ASX-listed diversified exploration and development company Apollo Minerals announced that Jindal Steel and Power Australia, a wholly owned subsidiary of India‘s Jindal Steel & Power, has increased its strategic investment in Apollo through a placement that takes Jindal‘s holding in the company to 11.7%.
Apollo Minerals has signed a share subscription agreement with Jindal Steel and Power Australia for Jindal to subscribe for 10 million ordinary shares at AU$0.04 (R0.36) per share to raise AU$400 000 (R3.64 million), which will will result in Jindal, one of Apollo‘s largest shareholders, increasing its strategic shareholding in Apollo.
This new investment by Jindal Steel & Power is welcome support by one of the companys major shareholders an important steel producer in its own right. “Collectively, our recent capital raising initiatives give the company the finances necessary to continue the exploration and development of its projects while ensuring that shareholder wealth remains protected,” said Apollo Minerals COO, Dominic Tisdell.
The investment by Jindal is in addition to Apollo‘s recent placement which raised AU$650 000.
The company added that it is also currently undertaking a share purchase plan for eligible shareholders, to raise up to AU$1 million on the same terms as the placement, taking the total funds raised under these capital raising initiatives up to AU$2.05 million and will be used for the exploration and development of Apollo‘s Commonwealth Hill iron project and Titan base-precious metals project, both situated in the highly prospective Gawler craton in South Australia.