MMX 0.00% 4.7¢ murchison metals ltd

posco takes a slice of mmx

  1. 741 Posts.
    South Korean iron and steel producer POSCO Ltd has acquired a strategic shareholding in Murchison Metals Ltd (ASX Code: MMX). Murchison said POSCO's subsidiary, POSCO Australia Pty Ltd, has been issued with 10 million ordinary shares and 30 million options at an exercise price of 50c per share for a total consideration of $3 million.
    The exercise of the options is timed to coincide with the completion of the planned Bankable Feasibility Study and prior to the commencement of construction of Stage 2 of Murchison's Jack Hills and Weld Range projects.
    A general meeting of shareholders will be convened in the near future to obtain approval for the issue of the shares and options, which will result in POSCO holding a 5.5 per cent interest in Murchison. In addition to its investment in Murchison, POSCO has the right to purchase up to 10 million tonnes of iron ore per annum over a 25-year period from Murchison when Stage 2 of the Jack Hills and Weld Range production commences. POSCO has total group assets of $US23 billion and annual steel production in excess of 30 million tonnes.
    Shares of Murchison Metals traded steady at 38.5c this morning.
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