Apollo Minerals has announced it will spin out its iron ore-related assets to fast-track their development, with the plan attracting a $10 million investment from India’s Jindal Steel & Power.
Apollo said today that it planned to transfer its iron ore tenements in Western Australia and South Australia, as well as its interest in the Gabon iron ore project, into a new entity which it plans to list on the ASX.
The company’s WA tenements cover 750 square kilometres of land around 25 kilometres south of the Cape Lambert Port.
Jindal will become the majority shareholder of the new company through a $10 million investment in its initial public offering.
The transaction will remain subject to Foreign Investment Review Board and Department of Defence approvals, Apollo said.
Chairman Tony Ho said the deal was a transformational event for Apollo that would unlock value for shareholders.
“The separation of our iron ore and base-precious metals assets is an important part of this process,” Mr Ho said in a statement.
“Apollo has achieved a great deal since getting access to our Commonwealth Hill iron and Titan base-precious metals projects sites a little over one year ago.
“We are pleased to have a major partner of the calibre of Jindal Steel and Power involved in our iron ore projects and we believe we now have the key ingredients required to take Apollo’s iron ore projects from exploration to production in the shortest possible time.”
At close of trade today, Apollo’s stock was up 20 per cent, trading at 7.2 cents.
