WPG offloads iron-ore assets to OneSteel
- Publishing Date
- 22 Aug 2011 12:00pm GMT
- Author
- Mining Journal
WPG Resources Ltd has agreed to sell its iron-ore assets in South Australia to steel-maker OneSteel Ltd for A$346 million (US$360.8 million).
The sale involves WPG’s subsidiaries, Southern Iron Ltd, Central Iron Ltd and Coober Pedy Resources Ltd, in a cash-and-debt-free basis deal, the company said.
Southern Iron’s major assets are the Peculiar Knob and Buzzard properties, Central Iron owns the Hawks Nest exploration licence, and Coober Pedy owns the Mt Brady and Windy Valley tenements.
WPG said the deal would not involve other subsidiaries including Spencer Gulf Ports Ltd, and coal units Southern Coal Holdings and Evergreen Energy Inc.
The transaction, which is equal to A$1.40 per WPG share, includes an estimate of the company’s expenditure from July 1 this year until the deal is completed (expected to be in October).
OneSteel will also provide a finance facility of up to A$140 million to enable WPG top continue development of the Peculiar project regardless of whether the deal is approved.
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