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19 Jul 2011

Clayton Utz acts for Gindalbie Metals on A$209m equity raising

Perth, 19 July 2011: Clayton Utz is advising ASX-listed Perth-based iron ore producer Gindalbie Metals Limited in connection with its accelerated non-renounceable entitlement offer and associated placement to raise A$209 million, announced today.

Clayton Utz Perth Corporate / M&A partner Mark Paganin is the firm's lead partner on the transaction, with support from Perth senior associate James Clyne.

The offer will be undertaken as a 1 for 3 accelerated non-renounceable entitlement offer of ordinary shares at an issue price of $0.67 per share. The non-Ansteel component of the entitlement offer (representing approximately $134 million) has been fully underwritten.

If Gindalbie's major shareholder Ansteel (35.89%) is unable to participate in the entitlement offer, there will be a placement to Ansteel of $75 million, subject to shareholder approval and on the same terms as the entitlement offer.

Ansteel is one of China's biggest steel makers.

Gindalbie will apply the funds raised towards development of the A$3 billion Karara iron ore project in Western Australia's mid-west.

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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.