01/07/2009 - 14:31

POSCO takes major stake in Jupiter Mines

01/07/2009 - 14:31

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South Korean steel maker POSCO has invested nearly $8 million in Jupiter Mines and entered into an offtake deal for up to 50 per cent of the West Perth-based company's future iron ore production.

POSCO takes major stake in Jupiter Mines

South Korean steel maker POSCO has invested nearly $8 million into Jupiter Mines and entered into an offtake deal for up to 50 per cent of the West Perth-based company's future iron ore production.

The investment was through a private placement 48 million shares at 16.266 cents each which raised $7.81 million.

The placement is subject to shareholder approval, which when receive will result in POSCO emerging with a 16.65 per cent shareholding in Jupiter.

POSCO will also be able to nominate one representative to Jupiter's board.

Following the placement, Jupiter will have $14.5 million in cash to accelerate its exploration and development activities at its Central Yilgarn iron ore projects and manganese assets.

The South Korean steel maker has also agreed to an arms-length offtake agreement with Jupiter for up to 50 per cent of future direct shipping iron ore production.

The offtake deal arose from a relationship that POSCO has with the Brian Gilbertson-led Pallinghurst Resources, which took control of Jupiter, along with associated company Red Rock Resources, earlier this year with a 55 per cent plus stake.

Shares in Jupiter closed up 1.5 cents to 20c today.

 

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