Chrystal Capital raises £11 million pre-IPO finance for Ironstone Resources Ltd
Chrystal Capital, together with Golden Gate Resource Management Group, have raised £11 million ($18 million) in growth capital for Ironstone Resources Ltd., a private Canadian based mining company focussed on iron ore, vanadium and gold resource development.
The oversubscribed private placement was led by a combination of London based family offices and resource focused institutional funds. The process also encompassed strengthening the main board through the sourcing of two new Directors, both with substantial experience in the resource sector and public capital markets.
“Despite difficult market conditions for Pre IPO financing, the depth and range of Chrystal Capital’s investor contacts ensured that the private placement was oversubscribed.”
The company is expected to achieve a number of critical milestones with the £11m of new capital over the next 12 months to deliver significant shareholder value creation ahead of an IPO on AIM. Ironstone is also now well placed for joint venture and off-take discussions with major global partners in order to accelerate its development into a fully operational mining company.
This private fund raising is Chrystal Capital’s second major deal in the past few months following its involvement in the $70m convertible bond issue for AIM listed Lonrho, with its joint venture partner ISM, which closed in November 2010.
“We are delighted that Chrystal Capital has successfully raised the capital for the next phase of Ironstone’s growth strategy. Despite difficult market conditions for Pre IPO financing, the depth and range of Chrystal Capital’s investor contacts ensured that the private placement was oversubscribed. We are pleased to welcome several new London investors to our shareholder base and look forward to working with them towards a successful listing on AIM in due course.”