Baosteel Resources acquires 9.9 pct stake in Canada's Noront
Shanghai. June 3. INTERFAX-CHINA - Baosteel Resources Co. Ltd. (Baosteel Resources) has completed the acquisition of a 9.9 percent stake in Toronto Stock Exchange-listed Noront Resources Ltd. (Noront), the Canadian mining firm announced June 2.
Baosteel Resources, a wholly-owned subsidiary of Baoshan Iron Steel Group (Baosteel Group), purchased 20.23 million Noront shares at CAD 0.86 ($0.88) per share, a total consideration of CAD 17.4 million ($17.80 million), according to the announcement. Baosteel Resources also holds one-year rights commencing May 2, 2012 to increase its stake to 19.9 percent.
The two companies announced their cooperation at the beginning of May, Interfax previously reported.
Noront holds the rights to an estimated 12,000 square-kilometer area containing nickel, copper, platinum, palladium and chromite reserves in northern Ontario's Ring of Fire mineral district.
-KHM
