Posted on 24 Mar 2014
Ansteel's current 50% stake in the project has been increased to 52% after the Chinese steelmaker converted $60 million of loans into shares to provide extra funding for the Karara mine, which is 200km east of Geraldton in Australia's mid-west.
A further cash injection by the Chinese of US$230 million reduces Gindalbie's stake to 38% and provides much needed working capital.
The Chinese move comes at a time when the Karara mine faces financial problems. Since 2012 its shares have fallen in value by 82% and is in debt to the tune of $2.5 billion. Ansteel's money will alleviate the situation and take the pressure off of Gindalbie.
Ansteel's vice president, Chen Ping, has been appointed managing director of the mining project (he is currently chairman).
