ASX Announcement - 23 September 2015
$2 MILLION INVESTMENT IN EASTERN IRON SIGNALS CHANGED FOCUS FOR THE COMPANY
Consortium of Chinese companies led by Fortune Future Holdings Ltd agrees to take a $2 million share placement in Eastern Iron Limited at $0.015 per share representing a 25% premium to the current share price.
With capital provided by the Chinese companies Eastern Iron will continue to progress the Nowa Nowa Iron Project as well as focus on acquiring near development or producing resource projects in Australia with the overall objective of building Eastern Iron into a mid-tier mining company.
The Directors of Eastern Iron Limited (ASX:EFE) are pleased to announce that Eastern Iron has
agreed to issue approximately 133.3 million new ordinary shares ("Shares") at an issue price of
$0.015 per Share to Fortune Future Holdings Ltd ("Fortune") a China based BVI registered company. The issue of the Shares will raise $2 million, is subject to approval by the shareholders of both companies and is expected to be completed by late November.
Fortune has a small number of shareholders and represents the interests of private Chinese investors who are also shareholders in some listed mining companies in China. Fortune is an active investor in the global mining industry and is currently the largest shareholder of Gowest Gold a Toronto listed gold explorer.
Upon issue of the Shares Fortune and its associates will hold approximately 46.6% of the issued shares in Eastern Iron and will nominate two directors to the board of the company.
The proceeds from the placement will be used as follows:
1. To undertake assessments of potential investment and acquisition of near development and operating resource projects.
2. Continue progress of the Nowa Nowa Iron Project.
3. Working capital requirements.
Eastern Iron Chairman, Steve Gemell said: "The Board welcomes the investment by Fortune Future Holdings Ltd and looks forward to an exciting new phase in the company's development with the potential to acquire and develop undervalued mineral projects as well as supporting our continued
assessment of the Nowa Nowa project."
ABN 70 126 678 037
INVESTOR INFORMATION
Further information, previous Eastern Iron announcements and exploration updates are available at
the News and Reports tab on the Company's website - www.easterniron.com.au
Mr Greg De Ross
Chief Executive Officer
Mob: 0417 711 274
ASX: EFE
For enquiries on your shareholding or change of address please contact:
Boardroom Limited GPO Box 3993, Sydney NSW 2001 Phone: (02) 9290 9600
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ASX Announcement - 23 September 2015