Ansteel funnels $84 million into Karara

Gindalbie Metals has received an $84 million cash injection from its joint venture partner Ansteel, to cover its working capital requirements at the Karara iron ore mine in the Mid West.

The funding is the first instalment of a bridging finance agreement between Gindalbie and Ansteel, which was entered into as part of the restructuring of the ownership of the Karara project last month.

Ansteel will provide Karara with any needed finance for the next 12 months.

Gindalbie also said today it had reached agreement with Ansteel to set the reference pricing index for the first year of magnetite concentrate sales from Karara.

Karara has also negotiated the right to sell 30 per cent of the concentrate produced in the first year of production to independent third parties.

Gindalbie shares were up 10 per cent on the ASX today, finishing at 13.2 cents.