Nevada Iron (ASX: NVI) has successfully completed a private placement to sophisticated investors in Canada, Europe and Australia, raising A$1.72 million.
The placement comprises the issue of around 9.3 million shares at $0.185 per share.
The proceeds from the placement will be used to advance the design work on the expanded Buena Vista Iron Project in Nevada, as well as progress the permitting aspects of the project.
The money raised will also facilitate the listing of Nevada Iron’s securities on a North American stock exchange, potentially the TSX.
Nevada Iron recently defined an initial Indicated Resource for the Section 5 deposit at the Buena Vista Project.
The Resource comprises 16.1 million tonnes at 23.1% for contained iron of 3.7 million tonnes at a 15% cut off, as well as a lower grade halo of 16 million tonnes at 12.2% for contained iron of 2 million tonnes at a 10% cut off.
The resource for Section 5 is about 50% more tonnes at roughly the same grade as the exploration target.
Providing exploration upside, the Section 5 resource is open at depth and along strike to the northwest.
The Buena Vista Project’s currently identified exploration targets provide for an additional 195 to 268 million tonnes of exploration potential.
The West deposit currently contains an Indicated Resource of 100.2 million tonnes at 20.3% for 20.3 million tonnes of contained iron.
The South Central deposit hosts an Inferred Resource of 18 million tonnes at 21.3% for 3.7 million tonnes of contained iron and the East deposit has an Inferred Resource of 19 million tonnes at 21.5% for 4 million tonnes of contained iron.
Updated resource estimates for the combined West, South Central (now called West) and East deposits are also being prepared.
The Section 5 deposit is located about 1 kilometre west of the proposed processing plant site at the Buena Vista Project, and is the first of the new resources to be estimated for the project after completion of a 17,000 metre drill program in 2012.
North American listing
Nevada Iron continues to progress the dual listing on a North American stock exchange with the critical path item being the receipt of the NI 43-101 Technical Report that is required for the listing.
The final items outstanding are the updated resources for the West and East deposits, which are anticipated shortly.
The location of the Buena Vista Iron project in the Americas makes it attractive for North American investors and the North American listing is expected to make it easier for them to invest in the company.
As always DYOR
NVI Price at posting:
$1.14 Sentiment: LT Buy Disclosure: Held
