LONDON (ShareCast) - Strategic Minerals, a magnetite iron ore producer and exploration company, has raised 4.2m pounds before expenses through the placing of around 102.67m new ordinary shares at 4.5p each.

The funds mean the company is now fully financed for its current operations.

The proceeds will mostly be used to provide working capital for the company's magnetite tailings deposit at the Cobre Mine in New Mexico, which is now in full scale production.

The group revealed it is "well positioned" to achieve shipments in the export market of around 50,000 dry metric tonnes (DMT) and said the first of these, of 53,000 DMT, is currently being loaded at the port of Guaymas.

Paul Harrison, Chief Executive Officer of Strategic Minerals, said: "We are delighted to announce this successful placing and in particular the interest shown by new institutional investors participating in this financing. The funding will be used primarily to meet the working capital needs of our operations at the Cobre mine in New Mexico including inside mine gate costs, rail freight to port and all port costs at Guaymas.

"This funding will ensure that monthly export shipments can proceed uninterrupted and leaves the company fully financed for all of its current operations."

Once the new shares have been admitted to AIM, the company will have just under 550.83m shares in issue.

The share price fell 11.91% to 5.17p by 13:45.

NR

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