South Korea's largest steelmaker POSCO has agreed to pay AU$7.81 million (US$6.2 million) for a 16.65 percent stake in Australian West Perth-based junior mining exploration company Jupiter Mines (Jupiter).
Upon completion of the transaction, Jupiter will have in excess of AU$14.5 million (US$11.5 million) in cash to accelerate exploration and development activities at its Central Yilgarn Iron Ore projects and at its manganese assets in Western Australia.
The transaction in question also includes an arms-length offtake agreement with Jupiter for up to 50 percent of any direct shipping ore (DSO) production arising from Jupiter's iron ore tenements. In addition, POSCO has the right to appoint a representative to the board of Jupiter following completion of the placement.
Jupiter said in a statement, "POSCO has previously entered into a cooperation agreement with London-based mining investment group Pallinghurst, an existing shareholder of Jupiter, to jointly pursue steel feed projects."
Commenting on the transaction, Jupiter executive chairman Geoffrey Wedlock said, "With both Pallinghurst and now POSCO as strategic partners and major investors in Jupiter, the company has strong leadership and is in a position to capitalize on acquisition and growth opportunities."
Meanwhile, it is reported that POSCO Mexico Continuous Galvanizing Line, the first North American production unit of POSCO, has started shipping its first products.
As per press report, on June 25 POSCO Mexico shipped 200 mt of galvanized products to be used in Mexico and Panama, the first shipment the company has made since POSCO started building its continuous galvanizing line in Mexico in September 2007.
In addition, the report states that POSCO Mexico also plans to expand its presence in potential markets in Latin America like Peru, Chile and Argentina, as well as in southern Europe and North Africa.