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Australia’s fifth largest iron ore producer Mineral Resources Limited (ASX:MIN) has bought a 12.78 per cent stake in takeover target Aquila Resources Limited (ASX:AQA).
Aquila Resources is currently developing the West Pilbara Iron Ore Project and only yesterday executed land access agreements for Native Title.
Mineral Resources says it was already looking into the project before Aquila received a $1.4 billion takeover bid in early May.
The company now intends to engage with stakeholders in the project to discuss a proposal to deliver the project on attractive terms.
Mineral Resources believes the investment was required to ensure it is well positioned to be actively involved and hopes to bring the project into production as soon as possible.
The company says it has the financial capacity to make a meaningful contribution to the development and will continue to engage with all stakeholders including Aquila’s suitors Chinese giant Baosteel and coal haulage company Aurizon Holdings Limited (ASX:AZJ).
Mineral Resources reported a net profit of $130 million in the first half of the 2014 financial year.
(20min delay)