Australia-based mining company Gindalbie Metals Limited announced on Thursday, May 13, that it has secured AU$175 million (US$156 million) under key components of a capital raising to fund the development of the Karara magnetite iron ore mine in West Australia. This includes a conditional share placement worth AU$63.2 million (US$56 million), possibly rising to AU$74.6 million (US$$66 million), offered to Liaoning-based Chinese steel producer Angang.
According to the announcement, Angang holds the largest stake in Gindalbie with 36.12 percent, and this will remain unchanged after share placement.
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.