20/06/2012 - 13:27

Grange looking to offload 30% of Southdown

20/06/2012 - 13:27

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Grange Resources managing director Russell Clark.

Grange Resources is seeking to sell a 30 per cent stake in its $2.57 billion Southdown iron ore project near Albany, and has appointed Deutsche Bank to assist with the process.

Grange managing director Russell Clark said the company was considering a number of options and the appointment of Deutsche Bank would ensure it secured sufficient equity for its share in the project.

"We are looking to sell at least a 30 per cent stake of the project, providing a teriffic opportunity for a suitable strategic investor requiring long term offtake of a premium quality pellet feed," Mr Clark said.

The Southdown  project, estimated to have reserves of 400 million tonnes of magnetite iron ore,  is a joint venture between Grange and Japan’s Sojitz Resources & Technology.

Grange currently holds a 70 per cent stake in the project, which it is aiming to develop into a 10 million tonnes per annum mine.

“Southdown is a strong and viable project that could operate for more than 30 years,” Mr Clarke said.

“During the past five years, we have spent more than $150 million developing all major aspects of the project which is well advanced.”

Mr Clarke said an equity strategy and project financing strategy would be formulated before the end of the year.

At 1:20PM, WST, Grange shares were up 1.4 per cent, at 50.7 cents. 

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