Apollo Minerals has announced that it will split its iron ore and base metals investments and form a new ASX listed company.
As WA Business News reports, the plan has attracted a $10 million investment from Indian company Jindal Steel and Power.
The new company, currently called NewCo, will take on Apollo’s iron tenements in the Pilbara region of Western Australia and an iron ore deposit at Commonwealth Hill in central South Australia, while Apollo will retain its base metals interests.
In South Australia it is also looking for Olympic Dam-style mineralisation at its Titan prospect west of the Prominent Hill copper and gold mine.
Apollo shareholders will receive shares in the new company on a pro-rata basis and the company said it will probably also conduct an initial public offer to raise more capital for the new company.
Non-executive chairman Tony Ho described the deal as a "transformational event for Apollo" and said that the deal will likely be finalised within the next two months.
“We are pleased to have a major partner of the calibre of Jindal Steel and Power involved in our iron ore projects and we believe we now have the key ingredients required to take Apollo’s iron ore projects from exploration to production in the shortest possible time,” he said.