Murchison Metals Ltd today announced that strategic shareholder POSCO Australia Pty Ltd had exercised its remaining 10 million options to invest a further $5 million into Murchison Metals.
West Perth-based iron ore company Murchison Metals Ltd received a boost today when South Korean steel giant Posco Ltd's Australian subsidiary exercised its option to invest a further $5 million in the company.
The full text of a company announcement is pasted below
Murchison Metals Ltd today announced that strategic shareholder POSCO Australia Pty Ltd had exercised its remaining 10 million options to invest a further $5 million into Murchison Metals.
POSCO is a wholly owned subsidiary of the world's third largest steel producer, POSCO Limited of South Korea. Following exercise of the options, POSCO will hold 40 million shares in Murchison Metals, increasing its interest to approximately 12 per cent of the current listed share capital.
Executive Chairman Paul Kopejtka said that the Board of Murchison Metals welcomed POSCO'S further strong show of support for the Company's Jack Hills and Weld Range iron ore projects which further strengthened the relationship between POSCO and Murchison Metals.
"The exercise of the options by POSCO is a clear signal of POSCO's confidence in MMX's exploration and mining strategy and a strong recognition of the potential of Jack Hills and Weld Range to become major iron ore developments. The achievement of Stage 1 production and the significant progress MMX has made towards completion of the feasibility study for Stage 2 are also considered significant factors in POSCO's decision to exercise their options early." he said.
"The relationship has blossomed since the signing of a strategic alliance between us in September 2005 and we welcome POSCO's increased commitment to our company."
"POSCO now holds a strategic 12 per cent shareholding, has signed an off-take agreement for up to 10 million tonnes of iron ore per annum from Stage 2 of the Jack Hills Project and is a key member in an infrastructure consortium bidding to build and develop the northern corridor rail and port infrastructure in the mid west region of Western Australia."
"Importantly, this multi-faceted strategic relationship has developed whilst Murchison Metals has retained 100 per cent control of its projects at Jack Hills and Weld Range."
"We believe this puts Murchison Metals in the best possible position to grow through Stages 1 and 2 of the Jack Hills Project, as we seek to increase annual production up to 25 million tonnes per annum."
