russians the latest to join iron party...

russians the latest to join iron party http://www.miningnewspremium.net//storyview.asp?storyid=68739§ionsource=s0

Russians the latest to join iron party
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Monday, 13 November 2006
Paul Garvey

INTERESTS associated with Russian billionaire steel baron Alisher Usmanov have swooped on acquisition-hungry iron ore miner Mount Gibson Iron in a $98.8 million deal that will deliver the world's 278th-richest man 19.9% of the Mid-West miner.

London-based Cambrian Mining – which picked up 19.9% of Mount Gibson when it accepted the miner's takeover offer for iron ore developer Aztec Resources – this afternoon announced it had offloaded its stake for 90c per share. Mount Gibson shares closed today prior to the announcement of the deal at 85c.

While Cambrian did not identify the buyer of the stake, Dow Jones Newswires quoted Mount Gibson managing director Luke Tonkin as naming Gallagher Holdings as the buyer.

Gallagher is controlled by Usmanov, who according to Forbes earned his place as one of the world's 278th-richest man through his ownership of the Oskol steel mill, the Ural steel industrial complex, and the Lebedinsky iron ore mining and processing facility.

"They [Gallagher] are very supportive of the company, they are very supportive of our strategy and they are very supportive of management," Dow Jones quoted Tonkin as saying.

"We are delighted that the holding of Cambrian has gone to this group because it certainly gives Mount Gibson a bit of impetus going forward."

The latest development in the tumultuous four-month struggle to unite Mount Gibson and Aztec comes less than a fortnight after Hong Kong-listed Shanghai Merchants Holdings snared 10.63% and 6.57% stakes in Mount Gibson and Aztec respectively.

A spokesman for Shanghai told MiningNews.net last Friday the company was eager to see Mount Gibson and Aztec sit down to resolve an outcome that would see the two entities merged into one.

On Friday, Mount Gibson announced another extension to its bid for Aztec, which included the clause that the bid would officially close should the company have failed to gain more than 50% of Aztec by the close of business on November 24. Earlier today, Mount Gibson revealed it had secured a total of 41.04% of Aztec, which is developing the Koolan Island iron ore project off Western Australia's northern coast.

Mount Gibson is offering one of its shares for every three Aztec shares.

Meanwhile, Cambrian chief executive John Byrne said a portion of the funds from the Mount Gibson sale would be used to "further strengthen Cambrian's coal and energy divisions".

The sale represented a $36.4 million profit on the total funds invested in Aztec by Cambrian.

Cambrian's last share sale prior to the announcement came in at its opening price of $3.15, while Aztec was also unmoved at 27.5c. Mount Gibson's closing price of 85c represented a 2.5c gain for the day.

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