Sundance Resources Ltd (ASX:SDL) has announced that it has raised $60 million from a share placement to institutional investors.
The iron ore junior plans to use the funds to advance its Mbalam Iron Ore Project in central west Africa, in the Republic of Cameroon.
Sundance says the funds will enable the project to become technically viable and economic and to ensure the company can start construction by the end of this year.
The capital raising was heavily oversubscribed and was made within the company’s placement capacity so shareholder approval was not required.
Yesterday shares in Sundance Resources fell 5.75 per cent to close at $0.41.
In 2010 financial year Sundance Resources recorded a net loss of $9.2 million.
