Anshan Iron and Steel (AnSteel) receives Chinese Government approval to invest $109.95 million in Gindalbie Metals

Wed. June 24, 2009; Posted: 02:15 PM

Jun 24, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- GDBGF | Quote | Chart | News | PowerRating -- Update on June 23, 2009:

Gindalbie Metals Limited, an Australia-based company engaged in the exploration, evaluation, and development of iron ore, has received clearance from the Chinese Government to raise AUD162.06 million ($109.95 million) through a private placement of 190,658,824 shares to Anshan Iron and Steel Group Corporation (AnSteel), a China-based producer of steel and metal products.

Update on May 8, 2009:

Gindalbie has received clearance from Foreign Investment Review Board to raise AUD162.06 million ($109.95 million) through a private placement of 190,658,824 shares to AnSteel.

Announcement (November 7, 2008):

Gindalbie has agreed to raise AUD162.06 million ($109.95 million) through a private placement of 190,658,824 shares to AnSteel at a price of AUD0.85 ($0.58) per share.

According to the terms of the agreement, the issue price represents a premium of 105% to the closing price of Gindalbie shares on October 31, 2008 and a 74% premium to the volume weighted average price (VWAP) of Gindalbie shares for the 30 days up until October 31, 2008.

Following the completion, AnSteel will increase its total shareholding to 255,658,824 shares, representing a 36.28% stake in Gindalbie. AnSteel currently holds 12.6% stake in Gindalbie.

Deal Value (US$ Million) 109.95
Deal Type                Private Placement
Sub-Category             None
Deal Status              Announced: 2008-11-07

Deal Participants

Target (Company)   Gindalbie Metals, Ltd.
Acquirer (Company) Anshan Iron and Steel Group Corporation

Deal Rationale

Gindalbie would use the funds raised to fund its share of the equity contribution towards the estimated AUD1, 800 million ($1,221.2 million) project development.

% Acquisition             23.68%
Offer Price ($ per share) 0.58
No. Shares Issued         190658824

For full details for GDBGF click here.

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