Yorke Peninsula minerals explorer Rex Minerals has confirmed it has raised $12.6 million in additional capital with a share-placement well below market price.

The company, which went into a trading halt Friday at 46 cents pending the announcement, said the placement of more than 31 million ordinary fully paid shares has been to institutional and sophisticated investors in Australia and overseas.

The deal is subject to shareholder approval, which will be sought at a General Meeting of Rex on 14 April.

Rex General Manager Mark Parry said the capital was needed to finalise the move from explorer to producer.

“This fundraising will allow us to expedite our business plans including completion of the Bankable Feasability Study, fees payable for early contractor involvement work and some of the early design and pre-engineering works for infrastructure at Hillside such as the water pipeline and electricity upgrade before we commit to the major funding and development of the project,” Parry said.

“In my visits in the past fortnight to the UK, USA and Asia it is clear that investors recognise the value in Hillside’s key attributes including its comparatively low capital intensity and cash generating potential.”

The news drew lukewarm reactions from investors on shareholder forums, such as HotCopper.

Rex shares were traded at much higher levels in recent years, hitting more than $2.80 in 2011 before a steady fall in 2012 from $1.50 to 73 cents and a slump in 2013 that hit 35 cents before rising back to 75 cents and then back below 50 cents.

The trading halt in the company’s shares was lifted this morning.