Australia-based iron ore exploration company Apollo Minerals has signed share subscription with Jindal Steel and Power Limited (JSPL) to raise funds of $400,000.

As per the terms of the agreement, the Australian subsidiary of JSPL will increase its stake in the company to 11.7% through the subscription of 10,000,000 shares issued by Apollo.

The company has stated that the funds raised through share placement will be used for the exploration of Commonwealth Hill Iron project and Titan Base-Precious Metals project.

Both of the projects are located in potential zone of Gawler Craton in South Australia.

Apollo had recently raised $650,000 through share placement as a part of its plan to raise nearly $1m for capital expenses through Share Purchase Plan.

Apollo Minerals chief operating officer Dominic Tisdell said. "Collectively, our recent capital raising initiatives give the Company the finances necessary to continue the exploration and development of its projects while ensuring that shareholder wealth remains protected."

The company expects to close the subscription agreement by 4 March 2013.