A Cayman Islands-based private equity firm has gained a majority stake in South Australian focused mining company Iron Road.

Sentient Group raised its holding in Iron Road from 38.9 per cent to 57.87 per cent after underwriting the iron ore explorer’s $40 million capital raising program, which was completed on 7 September.

The capital raising program, which offered shareholders 31 new shares for each 40 held at a price of 32c, aims to progress the company’s definitive feasibility study at its Central Eyre Iron Project and continue to develop its Gawler Iron Project.

Sentient Group, which manages over US$2.3 billion in mineral, metal and energy assets, took up a shortfall of 95.3 million shares worth $30.49 million to increase its stake

The jump in its holding comes as Perth-based Iron Road announced earlier this month it had increased its Adelaide-based team to 25 employees as it continues to progress plans for a mine at its Eyre Peninsula site, about 30km southeast of Wudinna.

The company said it had signed engineering and design contracts for various parts of the definitive feasibility study, and expected to be able to provide an update on its mineral resource before the end of the year.

Iron Road aims to produce 20 million tonnes of ore per year for more than 30 years.

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