Sandfire (ASX:SFR) Builds Strategic Alliance with Korea's LS-Nikko
Sydney, July 23, 2010 AEST (ABN Newswire) - Sandfire Resources Nl (ASX:SFR) said it has concluded an agreement with Korean-based LS-Nikko Copper Inc., the world's third largest copper smelter, encompassing a strategic alliance, sales arrangements for future production and a A$93.9 million share placement.
Under the agreement, LS-Nikko will acquire 12.5 per cent strategic holding in Sandfire through the issue of 18.7 million shares at A$5.02 per share, representing a premium of 10 per cent to the 5-day Volume-Weighted Average Price (VWAP) of Sandfire shares.
The funds will be used to underpin an unprecedented exploration program at the DeGrussa Copper-Gold project in Western Australia.
Sandfire said its relationship with LS-Nikko, together with existing strategic alliance with Korean steel maker POSCO (SEO:005490), will help the company to secure project finance on highly favourable terms.
Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: email@example.com