Zanaga Iron Ore Co Ltd (AIM:ZIOC) has entered a new share subscription deal with Shard Merchant Capital (SMC).
The arrangement will see SMC subscribe for up to 36mln shares in three tranches of 12mln each.
Proceeds will be used for general working capital, including the provision of further contributions to the Zanaga project's operations.
In 2022, SMC subscribed for 7mln shares, raising around £1.3mln.
Clifford Elphick, chairman, commented: "Following entry into of the Equity Subscription Agreement, ZIOC is pleased that a financing structure has been put in place which will give the company access to funding through a relatively low cost structure which minimises dilution to shareholders."
The news came alongside annual results which saw the firm swing to a pre-tax profit of US$8.1mln from a loss of US$1.9mln before.
The firm said a partnership had been launched with a Chinese iron ore technical expert engineering firm as part of a two-stage optimsation process of the Zanaga 30Mtpa staged development project.
The firm said the results of a feasibility study relating to the project are expected to be received in the fourth quarter.
“With ZIOC now positioned as 100% owner of the Zanaga Project we are now able to engage with strategic entities interested in partnering with us going forward,” the company said.
“The Project Team have continued to progress numerous workstreams with the potential to add significant value to the options available for the development of the Zanaga Project,” it added.