Australian junior diversified miner Jupiter Mines Limited (ASX: JMS) said today its shareholders had approved an equity issue to POSCO Australia’s (POSA) worth A$7.81 million, which would give it a 13% stake in the company.
The funds will be used to accelerate exploration and development activities at Jupiter’s Central Yilgarn iron ore projects and Manganese assets.
“(POSCO’s) investment in Jupiter is a strong endorsement of our steel feed strategy. We have funds committed for an aggressive exploration program this year and early sampling results, particularly from our Manganese assets, have been very encouraging,” said JSM’s Non-executive Chairman Geoffrey Wedlock. The company has secured more funds to finance its steel feed strategy from Pallinghurst Resources, which has confirmed its A$50 million commitment.
The investment agreement was announced in July, along with an offtake deal with POSCO to buy up to 50% of its future DSO-grade iron ore production.
POSA is a wholly owned subsidiary of Korean corporation POSCO, which operates two steel mills in Korea, being one of the main suppliers to the Korean automotive and ship building industries. Its principal activities include mining joint venture and investment including the trading of steel products.
Jupiter simultaneously announced the appointment of POSCO’s Sun Moon Woo as its non-executive director.
Jupiter added almost 5% on the Australian Stock Exchange following the release of the update.
Red Rock Resources (AIM: RRR) confirmed that its holding of approximately 93.1 million shares in Jupiter now represents 25.15% of the issued ordinary share capital.