Apollo Minerals Ltd., an Australian iron ore exploration company, is in talks to sell a stake to a Chinese steel mill after a visit last month.
Executives from three Chinese mills have visited Apollo’s Mt. Oscar iron ore project in Western Australia since Apollo held investor presentations in China last month, Richard Sealy, chief operating officer of the Sydney-based company, said today at a briefing in Melbourne.
Representatives from one of the mills returned to China with 120 kilograms (265 pounds) of ore samples to test through a plant, Sealy said. Apollo is in talks with the mill and may sell a 19.9 percent stake in the company or as much as a 50 percent stake as well as the right to future sales, he said.
“Provided tests were successful I would think you would see a result fairly quickly,” Sealy said. “They are serious about looking at our company.”
The prospective Chinese investor already has investments in Australia, Sealy said. Apollo is seeking funds for development work at Mt. Oscar and is studying possible construction of a mine by 2013, Sealy said.
Source: Bloomberg
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