RIMCapital writes off Yilgarn stake

05/08/2009 - 15:59

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Sydney-based RIMCapital has written off its investment in unlisted company Yilgarn Infrastructure Ltd, which was the unsuccessful bidder for the development of the Oakajee deepwater port and associated rail project.

RIMCapital writes off Yilgarn stake

Sydney-based RIMCapital has written off its investment in unlisted company Yilgarn Infrastructure Ltd, which was the unsuccessful bidder for the development of the Oakajee deepwater port and associated rail project.

In a statement today, RIMCapital said the investment, previously valued at $350,000, now has a nil value attached to it.

Earlier this year, RIMCapital said it would monitor its Yilgarn investment after the state government awarded Oakajee Port and Rail the development tender for the deepwater port and rail network in the Mid West.

In March, a state development agreement was signed, cementing OPR as the manager of the $4 billion project. OPR is jointly held by Murchison Metals and Japan's Mitsubishi Corporation.

Yilgarn had also submitted a further proposal earlier this year, outlining a $2 billion open access multi-user regional rail network to connect to the iron ore mines in the Mid West but the government awarded the project to OPR.

Yilgarn had previously said it had strong financial backing from an alliance of Chinese state-owned enterprises and banks.

Today, RIMCapital took a subtle dig at the government's drive to attract Chinese funding and technical expertise for the project.

RIMCapital first invested in Yilgarn in July last year, subscribing to 4 million shares worth $2 million on a partly paid basis.

At a Yilgarn meeting in May this year, shareholders agreed to credit the RIMCapital partly paid shares as fully paid for no additional consideration.

RIMCapital holds 5 million Yilgarn shares.

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