Strategic Minerals (LON:SML) has raised £751,585 through a share subscription to upgrade the rail network at its Cobre magnetite tailings asset in New Mexico.
Certain investors, including chairman Steven Sanders, subscribed to 7,515,854 company shares at a price of 10 pence per share - a premium to yesterday's closing price of 9.75 pence.
The proceeds will be used to carry out the required rail upgrade at its Cobre magnetite stockpile in New Mexico, the exploration and development firm said.
The AIM-quoted firm is developing a portfolio of magnetite stockpile assets and holds assets in North America and exploration properties in Australia.
Last month, it unveiled an iron ore resource for the Cobre asset in New Mexico and announced loan deals worth A$1.8 million.
In an update, the firm said the project had been found to have an estimated JORC total resource of 1.57 million tonnes of magnetite ore with an average grade of 61.7 per cent Fe.
This total figure comprises of a measured resource of 1.38 million tonnes and an inferred resource of 0.19 million tonnes, meaning that the majority of it is in the higher "measured" category.
The project was acquired by the firm through its acquisition of Ebony Iron Pty Ltd, which was announced earlier in September.
The firm revealed it had entered into an agreement with Damon Capital Funds Pty Ltd for a loan of A$1.6 million and another private investor for A$200,000 - making a total of A$1.8 million.
The company said the funds will allow work to begin to join the main railway line in the South Western Rail Road (SWRR) rehabilitation project. The payment for SWRR is around US$1.65 million, with the balance providing working capital for the Ebony iron subsidiary in the short term.
"This major payment enables the SWRR to procure the materials to commence the rehabilitation works and commences the work necessary to remove the impediment in joining the main rail line," the company had said.