Eastern Iron (ASX: EFE) is raising up to $1 million to progress work on the Nowa Nowa iron ore project in Victoria.
The funds will be raised through the issue of 14.3 million shares at $0.042 each to New York-based investment fund Harland Capital Fund.
It will hold a call option to acquire further shares at the same price to invest a further $400,000 worth of shares.
Proceeds will be used to complete drilling required to upgrade additional areas of the Resource to a Reserve status.
Nowa Nowa is located 250 kilometres east of Melbourne close to the Princes Highway and the company is investigating its potential as a high grade magnetite resource.
It has a Resource of 9.6 million tonnes grading 50% iron.
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