It is reported that Equatorial Resources will raise AUD 8 million from a share placement to fund a further airborne survey at the Mayoko Moussondji Project located in the south west region of the Republic of Congo.

In addition, the funds raised will be used to accelerate exploration at both the Mayoko Moussondji project and the Badondo project. A drilling program is planned in addition to detailed assessments of the existing rail and port facilities.

The company will place 9.78 million ordinary shares at USD 0.82 each to raise USD 8.0 million before costs, through GMP Securities Europe LLP.

Interestingly, Equatorial's magnetic and radiometric data has identified magnetic anomalies with a combined strike length in excess of a stunning 46 kilometers. This represents a significant increase from the 9km of outcropping strike length previously identified by the French Government Resource Bureau as being prospective for hematite and magnetite rich itabirite hosted iron ore mineralization.

Mr John Welborn MD & CEO of Equatorial Resources said that "We are highly encouraged by the initial results of the airborne survey, which indicate a significant increase in the potential scale of this project. It is rare to find a potentially large scale iron ore project in such close proximity to existing infrastructure."

The main target prospect, Makengui, extends over a 12 kilometer of strike length, and is located 500 meters from the existing operational heavy haulage railway line that runs through the project area directly to the deep water port at Pointe Noire.

(Sourced from www.proactiveinvestors.com.au)