Brazil purchase poised to put RIM on the radarEdited by Sarah...

Brazil purchase poised to put RIM on the radar
Edited by Sarah Thompson and Paul Garvey

RIMCapital?s Christmas Eve acquisition of some potentially substantial iron ore acreage in Brazil slipped
through to the keeper, with investors? thoughts elsewhere at the time.
Expect to hear more about it, though, with RIM signing up Southern Cross Equities for a raising for up to $40
million to complete the purchase of the assets and fund exploration work. To put that number in context, the
market capitalisation of RIM ? which is changing its name to Cabral Resources ? is just $17 million.
RIM?s acreage sits outside the iron ore regions that have made Vale the world?s second-largest miner, but the
company has identified exploration targets that could ultimately host more than 1 billion tonnes of magnetite
ore. Government plans for a railway straight through the tenements provide a potential infrastructure solution.
Before the Brazilian foray, RIM was best known for its role advising China Railway Materials Corp on its
takeover of West Australian iron ore play, United Minerals Corp. RIM is run by Michael Bogue, a former cohead
of JPMorgan?s Asia Pacific mining and metals investment banking team. The $40 million will allow RIM
to complete the Brazilian transaction and get drilling under way.