Flinders Mines has announced a USD 52.8 million capital raising to forge ahead with the company's Pilbara Iron Ore Project. The capital raising comprises a placement of approximately 160 million fully paid ordinary shares at USD 0.145 per share to USD 23.2 million and a fully underwritten 1 for 7 non renounceable rights issue at USD 0.13 per share to raise USD 29.6 million.

The proceeds of the capital raising will be used to progress the company’s iron ore project, including completion of the pre feasibility study for the development of the project.

Subject to the outcome of the pre feasibility study, the potential application of funds towards fast tracking mining operations from the Delta deposit will also be investigated. The balance of the funds would be applied towards the completion of a bankable feasibility study into the exploitation of its whole resource inventory and preliminary site works for its development.

Flinders will not be seeking prior shareholder approval in relation to the placement, however, it is conditional on ratification of previous share issues at the company's Annual General Meeting on November 6th 2009.

Flinders is expected to issue approximately 387 million shares, representing approximately 27% of its current issued capital.

(Sourced from www.proactiveinvestors.com.au)