shareman09 - thanks for the link. Hope, we shareholders will be...

shareman09 - thanks for the link.
Hope, we shareholders will be rewarded for our patience (T/O is possible)

POSCO JOINS PALLINGHURST AS CO-INVESTOR IN JUPITER MINES LIMITED

Pallinghurst shareholders are asked to note an announcement issued on 1 July 2009 by Jupiter Mines Limited (“Jupiter”) to the Australian Stock Exchange that, subject to approval by the shareholders of Jupiter, POSCO Australia Pty Ltd (POSCO) will become a strategic investor in Jupiter with the placement of 48 million ordinary shares to POSCO for US$6.25 million at 16.266 Australian cents per share. Jupiter will hold a General Meeting to seek shareholder approval for the proposed transaction with POSCO.
POSCO has also agreed an arms-length off-take agreement with Jupiter for up to 50% of Jupiter’s DSO-grade (direct shipping ore) iron ore production.

Background
On 9 March 2009, Pallinghurst and its joint venture partner Red Rock Resources (“RRR”) acquired a joint 43.6% interest in Jupiter (27.48% and 16.12% respectively), as part of Pallinghurst’s stated strategy of creating a supplier of the key raw materials to the steel industry.
Subject to approval by Jupiter shareholders, Pallinghurst, RRR and POSCO will jointly hold 52.98% of Jupiter.
POSCO made a commitment of US$200 million as a Pallinghurst co-investor to pursue steel feed projects with Pallinghurst on 21 April 2008. POSCO’s first indirect investment as a Pallinghurst co-investor into the Tshipi manganese project in the Kalahari Basin of South Africa was announced on the JSE and BSX on 4 June 2009.

http://phx.corporate-ir.net/phoenix.zhtml?c=223601&p=irol-newsArticle&ID=1303746&highlight=


Investment holding company Pallinghurst Resources pursues opportunities in natural resources globally.

shareman09 link:

Yilgarn Strategy
· The steel producers are looking for alternative iron ore suppliers to BHP, Rio Tinto and Vale. They are also targeting integration towards their raw materials to achieve more self-sufficiency.
· Pilbara is an expensive entry point with uncertainty about infrastructure and large capital costs.
· Our vision is to build an Australian Steel Feed Company (SFC) via a strategy incorporating:
o Consolidation and development of small, fragmented, early stage, iron ore (IO) companies and projects in the Central Yilgarn area of Western Australia (CYIOP)
o Leverage upon the Portman’s infrastructure at Esperance to fast track production, CYIOP assets are located 170km from existing railhead at Leonora leading down to Esperance which can export up to 15 million tonnes per annum of iron ore.
· On a standalone basis, all these projects are unviable due to lack of scale (resources) and financial and technical wherewithal.
· Consolidation in the Yilgarn is a low risk and a more certain development strategy as it minimizes the capital and operating costs on a per unit basis – attractive cost economics.
· Jupiter targets for 2009 are firming up the resources at its iron ore and manganese assets and implementing the consolidation vision.
· Currently there is only one iron ore producer in the Central Yilgarn Area of Western Australia – Portman (Cliffs Natural Resources), current production of 8.0 million tonnes per annum.
· Jupiter Mines Limited (JMS) has discovered 6.0 million tonnes of iron ore at Mount Mason and a large and high quality magnetite resource (approx. 500 million tonnes) at Mount Ida.
· From recent corporate transactions, JMS has acquired the nearby Mount Alfred tenements, a 10% shareholding in Mindax Ltd (holder of the Mount Forrest tenements) and tenements in the Pilbara prospective for manganese ore.
· JMS aims to consolidate prospective iron ore tenements at Mount Mason, Mount Alfred, Mount Bevan (Hawthorn Resources) and Mount Forrest (Mindax) into a single ownership or joint venture structure.
· Finally, JMS plans to operate the CYIOP consolidation in conjunction with Portman’s Projects (Koolyanobbing, Mount Jackson, Windarling and the recently acquired Mount Richardson) lifting overall iron ore productions from the Central Yilgarn to 15 million tonnes per annum or higher. Commitment of capital for this sustained expansion requires a resource base of 300Mt between Portman and Jupiter
· Pallinghurst/ Jupiter are targeting 150mt via its CYIOP consolidation strategy.
· Portman has contributed capital to the upgrading of the rail line between Kambalda and Esperance, rolling stock and similar capital contributions would be required for upgrades to the Leonora – Kambalda line.
· Esperance has a prescribed Environmental Approval Limit of 8.0Mtpy of iron ore. Increases above this limit will probably require the provision of the new ore-handling facility planned to be installed some 7km from the Port with connecting conveyors to the existing storage sheds and ship loader but would add more than 15Mtpy in capacity.
· Operating Costs A$40 – 50/t.
· Capital Costs of A$50/annual tonne of capacity.
· Project capacity of 3.0 million tonnes per annum (in addition to Portman’s production).

Cheers nj