Batavia Mining seeks shareholder nod for Jiangyin Huaxi Steel deal
Batavia Mining (ASX: BTV) will seek approval from shareholders for a
subscription agreement with Jiangyin Huaxi Steel, a leading Chinese
steel group, for the issue of the shares and options to raise $4.8
million before issue costs.
The company has also signed an
agreement with Jiangyin Huaxi Steel for potential off-take arrangements
for 1 million tonnes per annum for a period of five years from the Roper
River Iron Ore Project.
Jiangyin Huaxi Steel is a subsidiary of
Jiangsu Huaxi Group, which was established in 2002 and is the largest
township enterprise in China comprising 57 subsidiary companies.
In
2009, revenue of the Jiangsu Huaxi Group was approximately AUD$7.5
billion.
Located approximately 100km north-west of Shanghai,
Jiangyin Huaxi Steel currently employs approximately 3,400 personnel and
has a product portfolio covering billets, wire, flat and stainless
steel.
Jiangyin Huaxi Steel recorded revenue of AUD$1.4 billion
in 2009 and earnings before interest and tax of AUD$109 million which is
forecast to increase to AUD$147 million in 2010 with revenue of
AUD$1,639 million.
Batavia has recently completed a separate
placement of 20,000,000 and 10,000,000 Listed Options to raise
$4,800,000 before costs.
Following completion of the placement
to Jiangyin Huaxi Steel, Batavia will have approximately 153 million
ordinary shares and 99.83 million options on issue.
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