October 12, 2008

Haoning agrees to buy 9.55% stake of Jupiter

China Knowledge reported that Chinese iron ore and steel trader Haoning Group has formed a strategic alliance with Australian iron ore prospector Jupiter Mines Ltd through purchase of a nearly 9.55% stake in the Sydney headquartered company for USD 3.5 million.

The report said that Haoning Group will buy 14.8 million shares of Jupiter via its subsidiary, LSG Resources Pty Ltd out of its strategy to find long term supplies of raw materials for production expansion. After the acquisition, Haoning will become Jupiter's largest shareholder.

A report said that Jupiter will use the proceeds to fund exploitation of its Mt Mason iron ore mine in the central Yilgarn project in Western Australia, as well as to replenish its cash resources to hit USD 8 million.