Tweet
CHINESE OIL COMPANY BUYS 35% STAKE IN ARMENIAN MINING FIRM
Asbarez
Wednesday, January 12th, 2011
YEREVAN (Stockopedia news)-Hong Kong based Fortune Oil has acquired
a 35% stake in a company that owns three iron ore mines in Armenia.
Wednesday's deal will see the London-listed group pay $24 million for
a 35% equity interest in Bounty Resources Armenia Ltd, which owns mines
with proven, probable and inferred reserves of 1,832 million tons.
Fortune has the option to increase this holding to 50% for an
additional $16 million investment. Bounty's first mine, Hrazdan,
contains high quality iron ore at 40% iron concentration and is
expected to be profitable in 2014.
The move follows a decision by Fortune last November to diversify
its established gas production and oil processing operations. Under
a new strategy it is planning to capitalize on the demand for energy
and resources in China by investing in high growth commodities such
as oil, gas, coal, iron ore, copper and other metals, in countries,
which are close to China.
"We are extremely pleased to have begun implementing our new
Resources Strategy with our investment in these three iron ore mines
in Armenia," said Fortune's chief executive Tee Kiam Poon. "The
ever growing demand for resources in China, in addition to these
mines containing a significant amount of reserves, makes this a very
exciting opportunity. This is truly a "step-change" for the company
and its shareholders. We look forward to this acquisition making a
positive contribution in years to come."
Shares in Fortune rose by 9.5% to 11.5p Wednesday morning on news
that it had acquired Bounty Resources. Fortune shares hovered between
6 points and 8 points for much of 2010 before jumping as high as
12.5 points in December. That was triggered by news of promising
drilling results from its Liulin coalbed methane project in China
and a restructuring of its natural gas business, which could free up
funds for further investment totaling £24.2m.
China is the world's largest importer of iron ore, with imports
accounting for 60% of China's total iron ore consumption in 2010.
Between 2000-2010, China's iron ore imports increased from 69 million
tons to 619 million tons. It is expected that the country's iron ore
imports will increase to approximately 712 million tons in 2011.
From: A. Papazian
Asbarez
Wednesday, January 12th, 2011
YEREVAN (Stockopedia news)-Hong Kong based Fortune Oil has acquired
a 35% stake in a company that owns three iron ore mines in Armenia.
Wednesday's deal will see the London-listed group pay $24 million for
a 35% equity interest in Bounty Resources Armenia Ltd, which owns mines
with proven, probable and inferred reserves of 1,832 million tons.
Fortune has the option to increase this holding to 50% for an
additional $16 million investment. Bounty's first mine, Hrazdan,
contains high quality iron ore at 40% iron concentration and is
expected to be profitable in 2014.
The move follows a decision by Fortune last November to diversify
its established gas production and oil processing operations. Under
a new strategy it is planning to capitalize on the demand for energy
and resources in China by investing in high growth commodities such
as oil, gas, coal, iron ore, copper and other metals, in countries,
which are close to China.
"We are extremely pleased to have begun implementing our new
Resources Strategy with our investment in these three iron ore mines
in Armenia," said Fortune's chief executive Tee Kiam Poon. "The
ever growing demand for resources in China, in addition to these
mines containing a significant amount of reserves, makes this a very
exciting opportunity. This is truly a "step-change" for the company
and its shareholders. We look forward to this acquisition making a
positive contribution in years to come."
Shares in Fortune rose by 9.5% to 11.5p Wednesday morning on news
that it had acquired Bounty Resources. Fortune shares hovered between
6 points and 8 points for much of 2010 before jumping as high as
12.5 points in December. That was triggered by news of promising
drilling results from its Liulin coalbed methane project in China
and a restructuring of its natural gas business, which could free up
funds for further investment totaling £24.2m.
China is the world's largest importer of iron ore, with imports
accounting for 60% of China's total iron ore consumption in 2010.
Between 2000-2010, China's iron ore imports increased from 69 million
tons to 619 million tons. It is expected that the country's iron ore
imports will increase to approximately 712 million tons in 2011.
From: A. Papazian