Bauxite Resources (BRL) announced on Friday it had entered into mandate agreements with brokers Petra Capital and BGF Equities to raise $57 million through the placement of 60 million shares at 95 cents each.
The capital raising has been completed and the brokers have firm commitments for the funds, the company said.
According to BRL, the raising was heavily oversubscribed and applications had to be scaled back to accommodate demand.
The company conducted investor briefings in Sydney and Melbourne over three days last week, meeting 65 fund managers and institutions that were clients of the two brokers.
As part of the meetings, BRL presented a summary of the capital required to drive down the cash costs in its Days Sales Outstanding (DSO) operations, increase its projected shipping tonnages and to conduct feasibility study for its refinery.
A summary released to the market on 8 September indicated that these goals could be achieved with around $40 to $60m.
The company will inform shareholders when a meeting will be held to approve the placement.