29/08/2008 - 11:35

FMG seeks approval for funding option

29/08/2008 - 11:35

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Fortescue Metals Group Ltd will seek approval to issue preference shares to fund expansion plans at its Pilbara iron ore operations.

FMG seeks approval for funding option

Fortescue Metals Group Ltd will seek approval to issue preference shares to fund expansion plans at its Pilbara iron ore operations.

The iron ore miner has called for a September 30 meeting for shareholders to vote for an amendment to the constitution which currently does not provide for the issue of preference shares.

In a statement today, FMG said it had received a subscription application for preference shares for a total of $410 million, which is conditional on a successful vote at the meeting.

The company is currently investigating other funding options as part of an overall program to facilitate the project expansion.

The miner has already committed to expand the project production to 100 million tonnes per annum.

Additionally, FMG said it had already received $US275 million ($320 million) worth of product prepayment commitments from five Chinese steel mill for the expansion.

So far the company has received $US65 million ($A80 million) with the balance due over the next few months.

 

 

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