Australia-based mining company Gindalbie Metals Limited has announced that a meeting of its shareholders has approved the sale of 80.215 million company shares at a price of AU$0.94 per share, worth a total of AU$74.6 million (US$64 million), to Liaoning-based Chinese steel producer Angang.
In the middle of June, Gindalbie Metals Limited announced its plans to raise AU$175 million (US$156 million) via share placement to fund the development of its Karara magnetite iron ore mine in West Australia. This figure included a conditional share placement worth AU$63.2-74.6 million (US$56-64 million) offered to Liaoning-based Chinese steel producer Angang. Angang holds the largest stake in Gindalbie with 36.12 percent, and this percentage will remain unchanged after the share placement.
As SteelOrbis reported previously, in late March this year Gindalbie signed an iron ore supply contract worth AU$71 billion ($63 billion) with Angang. According to the contract, Gindalbie will supply 30 million mt of iron ore per year to Angang over the next thirty years, with the first shipments to reach China in the second half of 2011. Meanwhile, Gindalbie will sell the permanent mining rights to the Karara mine to Angang.