Iron Road focuses on Warramboo as IPO oversubscribed

Iron Road Limited, the Australian iron ore exploration company formed at the end of last year, has announced that its Initial Public Offer (IPO) has closed, oversubscribed.

The company, which expects to list on the Australian Stock Exchange on 10th June, has raised the maximum capital of $5 million.

The miner has already secured private equity investment from Sentient Group, which will hold 19.9% of the issued stock upon listing.

The funds will be used for the exploration of the Warramboo iron ore project on the Eyre Peninsula of South Australia.

An aggressive drilling project is planned alongside the commencement of a scoping study for potential development.

The project has been acquired from Adelaide Resources and contains extensive magnetite anomalies with a cumulative strike length in excess of 50 kilometres.

Warramboo’s high iron grades will enable the project’s concentrate can be used in the production of feedstock for DRI plants, as well as blast furnace feed.

The IPO saw shareholders in Adelaide Resources take up the entire priority offer in the float of 7,500,000 of the 25,000,000 Iron Road shares.

Shortly after this month’s listing, Iron Road will complete an entitlement issue of options to its shareholders on the basis of one option for every two Iron Road shares held.