(IBTimes) - Jindal Steel & Power Ltd., a company of Indian parliamentarian and businessman Naveen Jindal, has acquired for A$1 million a 9.25 per cent stake in Australian iron-ore miner Apollo Minerals Ltd.
Commensurate to the deal, subsidiary Jindal Steel and Power Australia Pty Ltd. gets 25 million shares of Apollo Minerals Ltd. at A$0.04 each.
In a statement issued late Tuesday, Apollo Minerals Ltd. said the A$1 million proceeds will be used to develop its Commonwealth Hill Iron Project as it fast tracks to already start producing iron ore from the project.
Apollo Minerals Ltd., which has two promising iron ore exploration projects including the Mount Oscar Project in the Pilbara region of Western Australia and the Commonwealth Hill Project in the Gawler Craton of South Australia, likewise said the 9.25 per cent stake by JSPL is only an "initial investment." The Indian steelmaker is expected to further make a significant investment in the company, the company noted.
Jindal Steel & Power Ltd is engaged in manufacturing of sponge iron, steel products and power generation. It owns coal tenements with six exploration permits in Queensland and a 27.27 per cent stake in Rockland Richfield. The Sydney Morning Herald reported it is eyeing another coal acquisition in Australia.
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