Burley Minerals (ASX:BUR) announced its entitlement offer closed significantly oversubscribed, raising $563,891. The company initially aimed to raise up to $563,000 through the non-renounceable offer, granting eligible shareholders one new share for every eight held as of April 28th. Yelverton Capital managed the placement, which also raised $1.1 million.
The offer, closing May 9th, initially secured $335,955. Existing shareholders strongly supported the subsequent shortfall offer, contributing an additional $227,936. Shareholders received a free attaching option, exercisable at $0.05 per share by May 31, 2026, for every two new shares. Funds will initiate a maiden drilling program at the Cane South target, within the Cane Bore Iron Ore Project in Western Australia. The program seeks to define an inferred and indicated resource across channel iron deposits.
Managing Director Stewart McCallion expressed optimism regarding the iron ore sector, highlighting opportunities for companies with robust balance sheets. He emphasized the Pilbara region’s sustained importance for iron ore mining and potential M&A activity as major companies replenish reserves. Iron ore remains crucial for steelmaking, with approximately 1.6 tonnes required per tonne of steel. Global steel production experienced weakness in 2024 but is forecasted to gradually increase to nearly 2 billion tonnes by 2030.
