Iron ore company Gindalbie Metals Ltd
(ASX:GBG) has received strong support from institutional investors for its capital raising announced yesterday.
Managing director Garret Dixon says uncertainty surrounding the proposed resource tax, however, made investors nervous and more uncertain in their investment decisions.
Despite this though, Mr Dixon says he is pleased with the level of support shown by institutional investors and looks forward to welcoming a number of significant new Australian and international institutional investors to the register.
Many viewed yesterday’s announcement from the company as a test to gauge investor confidence in the industry following the proposed 40% mining profits tax to be introduced from 2012.
The funds raised are to be used towards developing the company’s Karara iron ore project in Western Australia.
Gindalbie Metals fiscal 2009 profit came to $26.22 million.
