'invisible investor' smh

'Invisible investor' backs Padbury's $6b Oakajee revival

April 11, 2014 - 12:55PM 15

Peter Ker
Resources reporter

A media tour stops at the mouth of the Oakajee River, the northern border of Oakajee Port & Rail Pty's proposed iron ore port and rail project, in Geraldton, Western Australia, on Friday, June 19, 2009.
The mouth of the Oakajee River, the northern border of the original proposed iron ore port and rail project, in Geraldton. Photo: RON D'RAINE

Investors have shown interest in a highly unusual $6 billion equity deal this morning that is being spruiked by junior miner Padbury Mining.

Despite starting the week with a landlocked, marginal iron ore project, and a market capitalisation below $70 million, Padbury has today told the ASX that it has raised $6 billion to build and operate a new version of the failed Oakajee Port and Rail project in Western Austdralia.

Curiously, it has told the market very little else about the deal.

Padbury has refused to say where the money is coming from, and nor has it provided exact dates to the ASX for its delivery.

Despite the lack of details, shares in Padbury surged from 2 cents overnight to more than 5 cents in early trading.

Shortly after 11am they had settled at 3.5 cents, which still represents a 75 per cent rise.

Padbury boss Gary Stokes told Fairfax Media he was in Korea this morning and said the money was coming from an "invisible investor" who is a "wealthy Australian".

Mr Stokes would not name the "wealthy Australian", who has apparently sought to remain anonymous.

But he said the "wealthy Australian" had helped to source the money through banks, and that the $6 billion equity deal was 100 per cent confirmed on Tuesday night.

When asked if the person was famous, Mr Stokes said he could not even answer that.

"We are not revealing that at this point, they might choose to reveal themselves a little later down the track,'' he said.

The "wealthy Australian" will take a 64 per cent ownership of a new private company called mid west infrastructure, which would build an own the railway and port on WA's mid-west coast.

According to ASIC records, a company under the name Mid West Infrastructure was set up in 2010.

Documents from June 2012 suggest it shares an address with Padbury in West Perth.

The Oakajee port and rail project has been tried and failed several times, with Mitsubishi Development most recently abandoning it in 2013.

Mr Stokes said he was talking with Korean engineering and construction firms about potentially helping to build the port and rail project.

Korean contractors have recently won contracts on projects like Gina Rinehart's Roy Hill in the pilbara, but Hancock Prospecting - which is the major partner in Roy Hill - has today confirmed that it has no involvement with Padbury's claimed deal.

Padbury told the ASX that it was negotiating with the WA Government, but there are reports today that the WA government is denying knowledge of the project.

Read more: http://www.smh.com.au/business/mining-and-resources/invisible-investor-backs-padburys-6b-oakajee-revival-20140411-36h8u.html#ixzz2yYDhfSBo