(MENAFN - ProactiveInvestors - Australia) Image Resources' (ASX: IMA) substantial shareholder Pontian Orico Plantations has increased its stake in the company to 8.23% from 7.68%.
The Malaysian company increased its stake by acquiring 5 million shares for A1 million under Image's A6.7 million private placement, bringing its total shares held to 11.5 million.
With strong support from other Malaysian and Singaporean investors along with a new group of investors, Image's private placement demonstrated the international recognition its North Perth Basin Project is receiving.
Proceeds from the offering, together with working capital, exceed the current estimated costs for the Bankable Feasibility Study, and will also be used to cover the costs related to technical studies, environmental and mining approvals at Boonanarring.
Image has a 10.5 million tonne Measured and Indicated JORC resource at Boonanarring as part of an overall 52.9 million tonne resource in the North Perth Basin.
Resource upgrades are expected to bring the Boonanarring deposit alone to 15 to 25 million tonnes, depending on the cut-off grade used.
Image is targeting the construction of a 3.3 million tonne per annum single mine and wet plant operation at Boonanarring with production to commence in late 2014.