palmer joins arh china fund talks

Palmer joins ARH China fund talks

Sarah-Jane Tasker | July 06, 2009
Article from: The Australian

AUSTRALASIAN Resources' largest shareholder, billionaire Clive Palmer, has joined in finance talks for its iron ore project with its Chinese partner after the funding deadline passed.

The company's shares were suspended on Friday, with ARH saying it needed additional time to continue negotiations with its strategic partner, Shougang -- China's fourth-largest steelmaker -- about the Susan Palmer Deposit project agreement.

It is understood Mr Palmer, who has a 66 per cent interest in the company, was in Perth on Friday to participate in discussions with the Chinese group after the June 30 deadline on its project agreement passed.

Shougang, which has a 6.33 per cent stake in ARH, has a strategic alliance with the company to develop its flagship iron ore project in the Pilbara region of Western Australia, which the company had hoped would have already been in construction.

The two have not been able to finalise funding arrangements and have been extending the finance deadline since September.

In a market update on May 22, ARH said exclusive talks with Shougang had ended and it had been discussing alternative options with other parties but still preferred to finalise an arrangement with its Chinese partner.

It is understood a deal could be finalised by the middle of the week.

http://www.theaustralian.news.com.au/business/story/0,28124,25736622-36418,00.html