Batavia Mining has completed its $4.8 million capital raising to Jiangyin Huaxi Steel allowing the company to focus on an exploration program at the Roper River Iron Ore Project in the Northern Territory.
The placement comprises 20 million shares and 10 million listed options.
Batavia has also signed a Heads of Agreement with Jiangyin Huaxi Steel for potential off-take arrangements for 1 million tonnes per annum for a period of five years.
Full company statement below:
Batavia Mining Limited (ASX: BTV), is pleased to announce that it has completed its $4.8 million capital raising to Jiangyin Huaxi Steel Co Ltd ("Jiangyin Huaxi Steel"), enabling the company to focus on an exploration program at the Roper River Iron Ore Project in the Northern Territory.
The placement, which was approved by Batavia shareholders, comprises 20 million shares and 10 million listed options. Batavia has also signed a Heads of Agreement with Jiangyin Huaxi Steel for potential off-take arrangements for 1 million tonnes per annum for a period of five years.
Other potential Asian-based groups have also expressed interest in participating in the Roper River Iron Ore Project, either by taking part in future share placements, off-take arrangements or potential joint ventures.
EXPLORATION UPDATE
Batavia is pleased to report that proceeds from the capital raising will be used primarily to undertake an extensive exploration program at Roper River as part of the Company's strategy to develop a world-class iron ore project.
Exploration staff and consultants are now onsite and are expected to remain there for up to four months. Trenching of identified targets is underway and drilling will commence next week.
Batavia aims to establish an initial JORC resource for the Roper River Iron Ore Project by the third quarter of 2010. As previously advised, a Scoping Study is already underway.
Batavia Interim Chief Executive Greg Bittar said: "The completion of the placement to Huaxi strengthens our financial position, with the additional capital providing further flexibility around our planned exploration activities. The commencement of our field exploration program last week is a very exciting step towards understanding the potential of the Roper River Iron Ore Project."
