SteelOrbis Shanghai
Australian miner Mount Gibson Iron Limited (Mount Gibson) has announced that APAC Resources Limited (APAC) and Shougang Concord International Enterprises Company Limited (Shougang Concord) have agreed to underwrite a 1-for-5 renounceable rights issue at AU$0.60 per share to raise gross proceeds of AU$96.5 million. In addition, Shougang Concord will also subscribe for a placement of 110 million ordinary shares at AU$0.60 per share to raise an additional AU$66 million.
APAC and Shougang Concord are both Hong Kong Stock Exchange listed entities. One of APAC's substantial shareholders is Shougang Holding (Hong Kong) Limited (SHHKL) which owns approximately 18.95 percent of shares in APAC. SHHKL also owns about 41.14 percent of Shougang Concord. SHHKL is a wholly-owned subsidiary of China's state-owned Shougang Corporation.
If the deal is finalized, APAC and Shougang Concord will collectively own between 28.56 percent and 40.46 percent of Mount Gibson.