Mining & Industrial Harmanis buys into iron ore15th December...

Mining & Industrial

Harmanis buys into iron ore

15th December 2007, 11:15 WST

Jubilee Mines founder Kerry Harmanis, who has made a $473 million fortune out of nickel, has joined the race to develop WA’s next generation of iron ore producers.

Mr Harmanis is investing about $5 million in return for a 7.1 per cent stake in Talisman Mining, a fledgling Subiaco-based company exploring the Pilbara for iron ore.

The investment is Mr Harmanis’ first since agreeing to Jubilee’s $3.1 billion takeover by Xstrata two months ago.

Mr Harmanis, who set up Jubilee 20 years ago, is set to pocket $473 million for his 15.9 per cent stake.

Mr Harmanis would not comment yesterday and has made it clear previously that he intended to revert to a low profile once the Jubilee deal was completed.

Talisman confirmed Mr Harmanis’ investment late yesterday when announcing a $9 million share placement to select investors at $1 a share.

The money raised will mainly pay for resource drilling at Talisman’s flagship Wonmunna project in the Pilbara which the explorer hopes contains an iron ore resource of at least 50 million tonnes.

Talisman’s shares have been in a trading halt since Wednesday, having last closed at $1.30, but are expected to soar on Monday on news of Mr Harmanis’ investment. The shares were trading below 20¢ in August before Talisman announced a shift from mainly copper-focused exploration to iron ore, sparking the rally.

Mr Harmanis will invest $2 million in the placement and buy about $3 million worth of shares from Talisman’s founding managing director, Steve Elliott.

The total investment is likely to make Mr Harmanis the biggest shareholder in Talisman, which will have a market capitalisation of $96.2 million after the placement and the exercise by Mr Elliott of four million options.

The Wonmunna deposit has returned early-stage drill hits of 20m grading at 61.4 per cent Marra Mamba-style iron. It sits alongside Rio Tinto’s Hope Downs railway line and is likely to be ultimately reliant on access to its rival’s infrastructure.

Meanwhile, Mr Harmanis has urged Jubilee shareholders to speed up their level of acceptances of Xstrata’s $23-a-share cash offer.

The take-up of the offer, despite Mr Harmanis’ support, has been slower than expected and has forced Xstrata to extend the bid deadline to January 31.

The level of acceptances stands at only 40.1 per cent, with some Jubilee shareholders thought to be holding on to the slim chance of a higher, rival offer emerging.

Jubilee’s shares closed at $22.65 yesterday, suggesting the wider sharemarket did not believe a third party would be able to trump Xstrata.

In a letter to shareholders, Mr Harmanis urged them to accept the offer by next month’s deadline or face the prospect of being minority stakeholders in an Xstrata-dominated, listed Jubilee.
=================================================

PRW has a 1% interest in TLM.

They will also spin off a seperate company as a joint venture. This company called Protal Metals Group will concentrate on Uranium prospects and other meatls being copper,nickel and gold.

Very intersting.

Goodluck to TLM holders on MOnday!