Minerals explorer Trafford Resources Ltd
(ASX:TRF) says it will take up its full entitlement of 2 million shares at 65 cents a share in a $2.6 million rights issue to be undertaken by its subsidiary IronClad Mining Ltd
(ASX:IFE).
Trafford says IronClad is to use the proceeds raised to fund the final stages of the feasibility study into the development of the Wilcherry Hill Iron Ore Mine in South Australia, for securing government development approvals and for mine development.
Trafford Resources has a 50% direct interest in IronClad Mining and a 20% free carried interest in the Wilcherry Hill Iron Ore Project.
The company says first production from the project is targeted for the third quarter of the current year to take advantage of the strong demand for iron ore by China’s rapidly expanding steel industry and the resulting high prices for sea borne iron ore.
Trafford Resources posted a loss for financial year 2009.
