Company Announcement: Placement to Jindal Steel and Power
Apollo Minerals Limited is pleased to announce that it has signed a share subscription agreement with one of the Company’s major shareholders, Jindal Steel and Power Australia Pty Ltd, a wholly-owned subsidiary of India’s Jindal Steel and Power Limited. JSPL is a leading player in India’s steel, power, mining, oil and gas and infrastructure industries. Under the terms of the Subscription Agreement, JSPL will subscribe for 10,000,000 ordinary shares at $0.04 per share for gross proceeds to the Company of $400,000. This investment will result in JSPL owning 11.7% of the total issued shares in Apollo.
Proceeds of JSPL’s investment will be used for the exploration and development of Apollo’s Commonwealth Hill Iron Project and Titan Base-Precious Metals Project (“Titan”), both situated in the highly prospective Gawler Craton in South Australia, and working capital purposes. This investment by JSPL comes on the back of the Company’s recently announced capital raising activities in which it placed $650,000 to institutional and sophisticated investors and announced a Share Purchase Plan for eligible shareholders designed to raise up to $1 million on the same terms. Total funds raised under these offers may total $2,050,000. The JSPL Subscription Agreement is not subject to regulatory approvals from any Australian or State government agency. Completion is expected during the week of 4 March, 2013.
Dominic Tisdell, Chief Operating Officer said:
“This new investment by Jindal Steel & Power is welcomed support by one of the Company’s major shareholders - an important steel producer in its own right. Collectively, our recent capital raising initiatives give the Company the finances necessary to continue the exploration and development of its projects while ensuring that shareholder wealth remains protected.”
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