Ann: Chinese Government Approval for Ansteel $162, page-3

re: Ann: Chinese Government Approval for Anst... This media commentary is from Mining News today...I think the last 2 paragraphs sum it up nicely...

Gindalbie gets final nod for Ansteel
Tuesday, 23 June 2009

GINDALBIE Metals says it has received final approval from the Chinese government for a $A162.06 million share placement to its joint venture partner, Ansteel.

Following the share placement, Ansteel will hold a 36% stake in Gindalbie.

The company received approval for the transaction from the Foreign Investment Review Board (FIRB) in May.

The Chinese approval was the final condition required to complete the placement of 190,658,824 shares with Angang Group Hong Kong (Holdings) at A85c per share.

Gindalbie said the completion of the share placement would allow it and Ansteel to make final equity contributions of $143.68 million each to complete the entire $534 million equity component of the funding package for Gindalbie's Karara iron ore project near Geraldton, in Western Australia.

The pair will be working to complete the placement procedures in the next seven days.

The balance of the capital required for the Karara project will come through a loan facility of up to $US1.2 billion from the China Development Bank.

After payment of its final equity contribution, Gindalbie will have uncommitted cash reserves of about $A42 million, no debt and minimal cash burn.

“It's all systems go for Karara and we are continuing to work very hard to achieve final ministerial approvals to enable us to be on the ground during the December quarter of this year to begin construction,” Gindalbie managing director Garret Dixon said.