Strategic co-operation created between Aquila Resources Limited (AQA) and Baosteel Group Corporation, China’s largest steel mill and one of the world’s biggest steel makers, to fast-track the development of Aquila’s key steel raw materials projects including iron ore, coal, and manganese. Baosteel to invest up to $285.6 million in Aquila via a placement of up to 43.95 million shares (15%). Baosteel to work with Aquila to source low cost financing from Chinese financial institutions for most of its major projects. Baosteel to have a preferential opportunity to directly invest in and co-develop most of Aquila’s projects.
Aquila Resources Limited (AQA) and Baosteel Group Corporation have today executed two landmark agreements, a Memorandum of Strategic Co- operation and a share Subscription Agreement. Baosteel, which has several subsidiaries listed on the Shanghai Stock Exchange, is China’s largest steel manufacturer and one of the most important companies in the global steel industry. Baosteel is also active in resource development, technology services, finance and production services. The strategic co-operation that has been established by the signing of these two agreements is expected to deliver significant long-term benefits for both Aquila and Baosteel, and significant benefits to both Australia and China. This is a transforming event for Aquila. China’s largest steelmaker has established a strategic co- operation with Aquila, not only to make a major investment in the Company, but also to advance participation in some of the important projects in the Company’s portfolio. For Baosteel, this represents its first major international strategic investment in a public company and is an important transaction in Baosteel’s strategy to secure long-term supply of critical steel raw materials for its steel making business.
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