Iron ore price rises on firmer steel outlook, but trade tensions cap gains
Lower Chinese steel product inventory driven by robust exports also supported iron ore prices above $100/t.
China Hanking Holdings Ltd launched a takeover bid for Australia’s Primary Gold Ltd on Wednesday in line with a plan to build a long-term Australian gold business, valuing the target firm at A$37.5 million ($29.6 million).
China Hanking, which owns 8.4 percent of Primary Gold, will offer A$0.0575 a share for the miner through its unit Hanking Australia Investment Ltd, it said in a filing to the Hong Kong bourse on Wednesday.
Shares in Primary Gold, which have been on a trading halt since Feb. 16, jumped as much as 33 percent to A$0.52 a share when trading resumed.
Primary Gold, which has interests in the Coolgardie gold project in Western Australia and the Mt Bundy gold project in the Northern Territory, said the offer was pitched at a significant premium.
Its independent directors unanimously recommended that shareholders accept the offer, in the absence of a superior proposal and subject to an independent expert’s report, it said in a statement to the Australian stock exchange.
China Hanking said it would fund the deal through internal resources. ($1 = 1.2687 Australian dollars) (Reporting by Donny Kwok; editing by Richard Pullin)
