Sandfire secures alliance with korea’s Posco

Diversified Australian resource company, Sandfire Resources has announced...

  Diversified Australian resource company, Sandfire Resources has announced that it has finalised agreements with Posco Australia Pty Ltd (POSA), a subsidiary of the leading Korean-based global steel group POSCO, to acquire a strategic 19.99% stake in Sandfire through a proposed share placement comprising 16.5 million fully paid shares at 40 cents each and 2.5 million partly paid ordinary shares (Contributing Shares) at 25 cents each (with 15 cents unpaid).The Share Subscription Agreement, together with a Commercial Agreement, establish the foundations for a long-term alliance between Sandfire and POSCO.This will provide an immediate $7.2 million cash injection as well as the financial backing and strategic marketing, technical and corporate support of the world’s fourth largest steel producer, a Korean-based global company with a market capitalisation of some US$45 billion.This will enable Sandfire to accelerate the exploration of its high quality diversified portfolio of manganese, lead-zinc-silver, iron ore and gold projects in Australia, as well as position the Company to take advantage of additional resource opportunities, both in Australia and overseas.