find the latest legal job
Corporate/Commercial Lawyers (2-5 years PAE)
Category: Corporate and Commercial Law | Location: Adelaide SA 5000
· Specialist commercial law firm · Long-term career progression
View details
Graduate Lawyer / Up to 1.5 yr PAE Lawyer
Category: Personal Injury Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Mentoring Opportunity in Regional QLD · Personal Injury Law
View details
Corporate and Commercial Partner
Category: Corporate and Commercial Law | Location: Adelaide SA 5000
· Full time · Join a leading Adelaide commercial law firm
View details
In-house Legal Counsel & Commercial Lawyers
Category: Corporate and Commercial Law | Location: All Sydney NSW
· Providing lawyers with flexibility and control over when they work, how they work and who they work for.
View details
In-house Legal Counsel & Commercial Lawyers
Category: Corporate and Commercial Law | Location: All Melbourne VIC
· Providing lawyers with flexibility and control over when they work, how they work and who they work for.
View details
Small mining is canary in iron ore recovery

Small mining is canary in iron ore recovery

One small mining company tests boundaries of iron ore deals with China. Clayton Utz advises.

CLAYTON Utz is advising a Perth-based iron ore producer as it taps into a renewed optimism from Chinese investors to raise $167 million to fund future expansions of its Australian operations. 


The capital raising comes after recent strained relations between the two countries, following the arrest of Rio Tinto's head of iron ore in China, Stern Hu, along with three of his colleagues, for bribery and illegally obtaining trade secrets. 


But while major miners continue to negotiate over iron ore price, new deals with some smaller miners are being done. 


Grange Resources, which has conducted the $167 capital raising, comprising an underwritten non-renounceable entitlement offer and placements to substantial shareholders, is one of those smaller companies. 


Grange chief executive Russell Clark said the Hu episode was unfortunate, but that in the bigger picture China is a massive consumer and Australia a massive producer, reported The Australia. 


The offer was underwritten by joint lead managers Azure Capital and Patersons Securities and featured the participation of cornerstone investor Shagang, China's largest private steel mill, and other major shareholders. 


The proceeds of the offer and placements will be used to reduce Grange’s debt assumed as part of its merger with Australian Bulk Minerals in January 2009, fund its restructure, and provide funds for its working capital and Savage River operations.  


“The restructure initiatives supported by the raisings, as well as additional working capital, allow us to position the Company and its balance sheet correctly for the current financial climate. As an existing producer we are also well placed to benefit from the future iron ore price outlook,” said Clark. 


“We believe future iron ore price fundamentals are very promising. This year’s benchmark settlements are the second highest on record, and we are already receiving numerous enquiries to purchase spot product at a significant premium to the current benchmark," he said.


The Clayton Utz team was led by corporate advisory/M&A partner, Matthew Johnson, and included senior associate Rohan Mishra and lawyer Norman Chan.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Small mining is canary in iron ore recovery
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Scales of Justice
Dec 15 2017
Timing ‘critical’ in unusual contempt of court ruling
A recent case could have interesting implications for contempt of court rulings, according to a Ferr...
Dec 14 2017
International arbitration and business culture
Promoted by Maxwell Chambers. This article discusses the impact of international arbitration on t...
Papua New Guinea flag
Dec 14 2017
World-first mining case launched in PNG
Citizens of Papua New Guinea have launched landmark legal proceedings against the country’s govern...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...