Aquila finalised the agreement this afternoon, placing 43.95 million shares to the Chinese steelmaker at $6.50 per share.

 

“The company now looks forward to developing its relationship with Baosteel to the mutual benefit of both companies,” Aquila said.

 

It will use the cash to further develop iron ore, coal and manganese projects in Australia and South Africa.

 

The company’s 40%-owned West Pilbara Iron Ore project is expected to produce 30-40 million tonnes per annum with shipping through Anketell Port.

 

Queensland coal projects under development include the 50%-owned Isaac Plains development, which will produce 2.8Mtpa; the large, 50%-owned Eagle Downs prospect, which could produce up to 8Mtpa; and the wholly owned 1.6Mtpa Washpool development.

 

Baosteel has also agreed to work with Aquila to source low-cost financing from Chinese financial institutions for most of its projects.

 

The Chinese steelmaker will be given preferential opportunity to directly invest in and co-develop most of Aquila’s projects.

 

Aquila shares closed up 1c to $9.10.