31/01/2011 - 11:55

Jupiter raises $150m for manganese, iron

31/01/2011 - 11:55

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Jupiter Mines has raised $150 million to develop its Western Australian iron ore projects, Mt Ida and Mt Mason, and its Tshipi Borwa manganese operation in South Africa.

Jupiter Mines has raised $150 million to develop its Western Australian iron ore projects, Mt Ida and Mt Mason, and its Tshipi Borwa manganese operation in South Africa.

The funds were raised in two tranches, with institutional investors issued 142.9 million shares at 70 cents a share, to raise $100 million, and Jupiter Director Piyank Thapliyal agreeing to invest $1.5 million.

Also, 71.5 million shares were issued to a consortium of Pallinghurst co-investors, to raise $50 million, subject to Jupiter shareholder approval.

The consortium, led by Brian Gilbertson, includes South Korean steel giant Posco, coal magnate Hans Mende, Pallinghurst Resources, Singapore government-backed investment group Temasek Holdings and Exxon Mobil's Lee Raymond.

Jupiter said the $100 million would be used to develop its 49.9 per cent-owned Tshipi Borwa manganese mine and $40 million would be used to fast track development of the Mt Ida and Mt Mason iron ore projects, in WA's Central Yilgarn.

The remaining $10 million would provide general working capital.

Jupiter expects to commence manganese production at Tshipi during the second half of 2012, while construction at Mt Ida is expected to begin at the same time.

The investment in Jupiter is part of Pallinghurst's Steel Feed Corporation strategy to become a global player in the supply of raw materials of the steel industry.

Pallinghurst's investment has taken Jupiter from junior explorer with $20 million market capitalisation, to a $224 million company holding promising manganese and iron ore assets.

 

 

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