FMG gained shareholder approval last year to place 55 million shares and received a one-month extension from ASIC to place the shares by today.

FMG’s executive director Graeme Rowley told MiningNews.net the company was planning on completing the 15% placement that did not require shareholder approval under ASIC rules, and was not concerned about missing the deadline to place the extra 55 million shares approved last year.

“If we have to raise more than 15% we have the option of going back to shareholders,” Rowley said.

Rowley said the company also has the option of going back to ASIC today to seek another extension.

“We’re still working through those various options (but) none of them represent an end to the issue,” Rowley said.

“None of the issues are stalled in any sense by that period running over at the end of today.”

Rowley said FMG was still in negotiations with various potential equity partners with regards to taking a stake in the $A2.5 billion Chichester Range iron ore project.

“Naturally we want to resolve that before we follow-up on the debt process,”

Rowley said the company was looking at a 70:30 debt-equity spilt for financing.

The new resource estimate for Cloud Break, revised by Snowden, has gone up 34 million tonnes or 4% to 850Mt grading 58.71% iron, 4.05% silica, 1.4% alumina and 0.06% phosphorus. Of this estimate, some 363Mt is considered “high-grade” with iron content above 60%.

Some 144Mt of the Cloud Break resource now falls in the measured category, with a further 561Mt now classified as indicated.

The upgrade not only represents an increase in size and confidence levels but also came out with an increased iron grade and reduced containment levels.

Last month, FMG upgraded the resource estimate for the Christmas Creek deposit to 1415Mt grading 58.4% iron, 4.3% silica, 2.49% alumina and 0.05% phosphorus. About 1095Mt of the resource is measured and indicated.

FMG says some 1800Mt of material across the two deposits is now available for conversion to reserves with further resource and reserve work ongoing.

The $A2.5 billion Chichester Range project has a probable reserve of 1.06 billion tonnes, calculated in December.

First production is scheduled for 2008.

FMG made the headlines for all the wrong reasons in the past week after it was revealed that the company was being investigated by the Australian Securities and Investment Commission for breaches of the Corporation Act relating to the announcement of “binding” contracts that FMG had with Chinese partners in 2004.

FMG’s share price has been bleeding since reaching a high of $6.60 in late January, reaching a recent low of $4.62 during yesterday’s trade. The stock was off a further 3c (0.63%) in midday trade at $4.72.