Tuesday, 18 December 2012 13:08
Australian iron ore producer BC Iron confirms the transaction announced to the ASX on 10 December 2012 with Fortescue Metals Group has now been completed.
BC Iron has received the proceeds from its $47 million underwritten institutional placement and US$130 million ($123 million) amortising term loan facility, and remitted A$190 million in cash consideration to Fortescue.
Effective from 1 January 2013, BC Iron’s interest in the Nullagine Iron Ore Joint Venture will be 75 per cent and the capacity available to the NJV on Fortescue’s rail and port infrastructure will be 6 Mtpa.
“This is a landmark transaction for the company,” BC Iron managing director Mike Young said. “We will now focus on hitting our new targets at the NJV operations and working with all our stakeholders towards the goal of achieving a production run-rate of 6 Mtpa during the June quarter of 2013.”
As announced on 10 December 2012, BC Iron will also conduct a share purchase plan to raise up to A$10 million from eligible BC Iron shareholders at the record date of 7pm Sydney time on 7 December 2012.
The SPP is expected to open on 19 December 2012. Further details of the SPP, including the final SPP price and instructions on how to apply, will be released on the ASX and distributed to eligible shareholders in due course.
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