West Perth-based mining company Sphere Investments Ltd has made its debut on the Dubai International Financial Exchange, making it the first iron ore company to do so.
West Perth-based mining company Sphere Investments Ltd has made its debut on the Dubai International Financial Exchange, making it the first iron ore company to do so.
Sphere said in an announcement it would use the listing to create a regional base for its planned development of the Guelb el Aouj joint venture in Mauritania.
The listing follows that of Michael Kiernan's Monarch Gold Mining Company Ltd, which became the first Western Australian stock to list there last month
The full text of a Sphere announcement is pasted below
ASX-listed Sphere Investments Ltd (code: SPH) listed on the Dubai International Financial Exchange (DIFX) today (Wednesday 18 July 2007) as the first company in the iron ore sector to list on the new international stock exchange in the Gulf region.
The listing creates a regional base for Sphere its planned development of the US$1.5 billion Guelb el Aouj iron ore direct reduction (DR) pellet project, in joint venture (JV) with Société Nationale Industrielle et Minière (SNIM) in Mauritania.
"The DIFX is a natural fit in that our shares can now be traded in the financial centre that is parallel with our regional focus, together with our partners in Mauritania and the Gulf," Sphere's Managing Director, Mr Alexander Burns, said from Dubai today.
The DIFX's Chief Executive, Mr Per E. Larsson, said the dual listing of an Australian company with operations in Mauritania, West Africa, and business partners in Saudi Arabia and Qatar, underlined the role of the DIFX as a gateway linking its region with the rest of the world.
Shareholders can trade shares in Sphere - which is the fourth mining company on the Exchange - on both the DIFX from today, and the ASX as before.
"The DIFX is an ideal listing platform for both international and regional issuers, as it provides strong links to international and regional investors," Mr Larsson said.
In March of this year, Sphere and SNIM signed a Memorandum of Understanding (MOU) with Saudi Basic Industries Corporation (SABIC) and Qatar Steel Company to jointly develop the Guelb el Aouj Project for supply 7 million tonnes pa of DR pellets.
Under the terms of the MOU, SABIC and Qatar Steel - which collectively own 18.4% of Sphere - are to acquire 34.9% and 15% respectively of the shares in a new company being established in Mauritania to develop the project following the completion of the bankable feasibility study due by year end.
In addition to the three Guelb el Aouj deposits, the JV Area contains Tintekrate and Bou Derga, two magnetite deposits estimated to contain in excess of 1 billion tonnes of high quality material, which the JV partners will study for future expansion options.
Outside the JV, Sphere also owns the estimated +1 billion tonne Lebtheinia project in Mauritania. The Company has been approached by several major European, Indian and Japanese steel and trading companies interested in participating in the assessment and development of the project for export of blast furnace quality iron ore pellets.
