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Drilling at the Pilbara iron ore project.
Drilling at the Pilbara iron ore project.

UPDATE 1.30pm: Flinders Mines says it will raise $14.3 million for further exploration and a bankable feasibility study for its Pilbara Iron Ore Project.

The raising will comprise a $6.8 million placement and a one-for-seven rights issue to raise $7.5 million, with both priced at a discounted 2.5 cents a share.

"Moving forward, the company will be examining broader funding strategies to finalise the BFS and progress with project development," Flinders said in a statement.

"Importantly, the company has retained flexibility over future funding options which may include, amongst others, pre-sales agreements, offtake agreements, joint venture arrangements, equity funding, debt funding and/or a combination thereof."

The company's Pilbara project hosts a mineral resource of 917.3 million tonnes at 55.2 per cent iron, based on a 50 per cent cut-off grade.

Flinders Mines shares closed up 3.2 cents, or 6.67 per cent, at 3.2 cents after emerging from a trading halt.