Singapore miner buys shares in Northern Iron
The Singapore based mining company OM Holdings announced Thursday that it has agreed to subscribe to a strategic investment in Northern Iron, the company operating the Sydvaranger mine in Northern Norway.
Both the Australian based Northern Iron and OM Holdings went into a stock market trading halt until Friday after OM Holding announced its strategic investment in Northern Iron on Thursday.
The Sydvaranger iron ore mine near the Norwegian border town of Kirkenes re-started its production last year. Due to start-up challenges, the mining company had cost blowouts, and need a capital raising, reports The Australian Business.
Read also: Norwegian mining industry grows again
The Australian Business writes that Northern Iron might announce a capital raising of A$ 50 million as early as today.
In its announcement, OM Holdings says they agreed to subscribe for 28,25 million ordinary shares, totaling A$40,96 million, which will result in OM Holdings becoming a 10 percent shareholder in Northern Iron.
The new shareholder in Northern Iron writes that Sydvaranger iron ore project has the potential to become an independent long life world class emerging iron ore opportunity.
