Cyclone Metals (ASX:CLE) has raised $1,350,000 from institutional and sophisticated investors through a placement of fully paid ordinary shares at an issue price of $0.0025 per share.

The funds raised will be used for the proposed work program on the Block 103 Magnetite Iron Ore Project, costs of the proposed acquisition of Labrador Iron Pty Ltd, and for general working capital requirements.

Completion of the Labrador Transaction is subject to certain conditions precedent, including the receipt of shareholder approval for the issuance of the consideration shares.

A notice of shareholder meeting will be distributed to shareholders shortly, with the meeting expected to be held in late February 2023.

The Placement's lead manager is Barclay Wells Limited, who will be paid 6% of the amount raised, be issued 25,000,000 fully paid shares in the Company, and enter into a contract to provide advisory services to the Company for 12 months commencing 1 March 2023.

Following the announcement, shares of Cyclone Metals (ASX:CLE) were unchanged at $0.003.