The Eastern Iron Limited (ASX: EFE) share price soared into the green during afternoon trade to finish the session at 4.7 cents.
That’s a 20.5% jump on the opening price and well ahead of the S&P/ASX 200 index (ASX: XJO) which climbed 1%.
Eastern Iron shares are on the move despite no market-sensitive news from the company today.
Let’s take a closer look at what’s up.
What’s pushing the Eastern Iron share price lately?
The Eastern Iron share price has been rising since the company announced a strategic placement and equity raising last week.
The placement of $1.05 million was made to Ya Hua International Investment and Development Co Ltd. As a result, it will become a substantial shareholder of Eastern Iron.
In addition to this placement, another tranche of $2.52 million will be placed to sophisticated and institutional investors, according to the release.
As such, Eastern Iron is seeking to raise an additional $3.57 million before costs. Funds raised from both offerings will provide the company with financing to expedite existing projects.
It also positions the company well to develop further lithium projects with Ya Hua and provides a financial commitment to the pair’s strategic relationship.
Investors have bought enthusiastically on the news and driven the Eastern Iron share price 51% higher over the week.
A bit more on Eastern Iron
Eastern Iron is in the iron ore exploration business. The company focus is developing resources at its flagship project, the Nowa Nowa Iron project in Victoria.
Eastern Iron was incorporated in 2007 and it was listed on the ASX in 2012 at 11.3 cents.
Even though it is an iron ore specialist, it appears to be making a pivot away from the now-struggling commodity.
The Eastern Iron share price took off on 6 September when the company announced another venture with Ya Hua to acquire and develop lithium projects.
The Eastern Iron share price has ballooned by 370% in just a month.