24 Sep 2009 12:19

Australia's Cazaly to sell shares to unnamed Chinese steel supplier

Shanghai. September 24. INTERFAX-CHINA - Cazaly Resources Ltd., an Australian gold and iron ore miner, plans to issue 10 million new shares worth AUD 4 million ($3.49 million) to an anonymous Chinese steel product supplier, the Australian Securities Exchange-listed miner announced on Sept. 23.

According to the announcement, the funds raised will mainly be used to finance the development of Cazaly's Parker Range iron ore deposit, which has 23.5 million tons of iron ore resources grading 55.4 percent, and is located near Perth, Western Australia.

After the transaction, the Chinese steel product supplier will hold a 10 percent in Cazaly, though the transaction is still subject to Cazaly shareholder approval.

The Chinese steel product supplier, which is located in southern China, is privately owned with an annual sales revenue of over AUD 100 million ($87.28 million), Cazaly said. The steel supplier also has close commercial relationships with several large-sized steel mills in China.

Cazaly also owns the Hamersley iron ore deposit and the Rhodes Ridge iron ore deposit in Western Australia, as well as several gold deposits in the region's East Coolgardie Mineral Field.