Equity raised comprises a $40m underwritten institutional placement and $22m liable by shareholder Ansteel to maintain its 36% equity interest in the company.
The institutional placement is expected to be settled by 6 December 2012 with Australian law firm Clayton acting as legal advisor.
Gindalbie plans to forward the funds toward its flagship Karara Project in the Midwest region of Western Australia to address any possible increase in working capital.
Commenting on the equity raised Gindalbie managing director Tim Netscher said the proceeds of the equity raising would give it greater balance sheet flexibility and liquidity during the important commissioning phase for the Karara Project.
The project is currently under a 6-month commissioning and ramp-up phase for the magnetite concentrator and a nameplate capacity of 8Mtpa that is expected to be achieved in 2013.
