Mindax (ASX: MDX) has been granted a trading halt by the ASX pending the release of a proposed capital raising, with the company's shares placed in pre-open.
Mindax has not yet indicated where the potential capital injection will be allocated, but towards the end of 2011 the company started to unlock the DSO potential of Mt Forrest with solid beneficiation results.
Coarse crushing with heavy media separation, a simple process used by Rio Tinto (ASX: RIO) at its Tom Price operations, showed the best upgrade and mass recovery.
Mindax also recently delivered a 20% upgrade to the Indicated and Inferred regolith iron Resource at Mt Forrest which now stands at 14 million tonnes at 45.3% iron. The upgrade is based on 269 reverse circulation drill holes and 4,134 samples.
Significantly, more than 60% of the regolith iron Resource above a 40% iron cut-off has now been unlocked due to the encouraging metallurgical test work, adding further value to the Mt Forrest Project.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Wednesday 22 February.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/25500/mindax-granted-halt-pending-capital-raising-announcement-25500.html