WPG Resources Ltd (ASX:WPG) announced that it had raised $85 million to develop the flagship project of the company, Peculiar Knob. The company formerly known as Western Plains Resources is also looking forward to raising an additional $75 million by placement of 110.3 million ordinary shares at 68 cents each.
They were hoping to raise another $10 million via a non-renounceable rights issue of 14 million shares. These would be issued on a one for 10 basis at 68 cents a share. The money will fund the flagship mine located in South Australia, south of Coober Pedy.
The money thus raised will contribute to the development of the direct shipping iron ore projects and will also be available for working capital at Peculiar Knob. The equity raising will be done in two tranches of 18.3 million ordinary shares and 92 million ordinary shares.
WPG Resources Tenement Location. Image Credit: WPG Resources
This is subject to shareholder approval. On December 22 a shareholder meeting has been scheduled to consider and approve of the fund raising tactic. Austock Securities Ltd and Veritas Securities Ltd have been appointed lead managers for the placement and underwriters of the rights issue.