Australia-based
iron ore producer Gindalbie Metals Limited (Gindalbie) has announced that it has agreed with its joint venture partner Chinese steelmaker Ansteel to a restructuring of the Karara
iron ore project in Western
Australia, in a move which will leave Gindalbie ideally positioned to take advantage of growth opportunities. The restructure project is subject to approval of
Australia's Foreign Investment Review Board (FIRB), Chinese regulatory approvals and bank consent.
According to Gindalbie's statement, its stake in Karara
Mining Limited (KLM) may be reduced from 50 percent to a minimum of 47.84 percent as Ansteel undertakes to provide all required bridging loan finance to KML to fund any cash shortfalls over the next 12 months. The new arrangement and funding mechanism remove the need for Gindalbie to raise further equity capital to support KML's working capital requirements, leaving the company with more than A$35 million in cash and no debt.