Passport Capital cornerstones RIM Edited by Sarah Thompson and Paul Garvey Passport Capital, the fund that made a tidy profit from selling a portion of its stake in Rio Tinto takeover target Riversdale Mining and is believed to have recently taken a position in boom copper stock Sandfire Resources, has popped up as a substantial shareholder in soon-to-be iron ore explorer RIM Capital. Passport Capital picked up a 9.84 per cent stake in RIM after taking part in the company?s $25 million capital raising last week. The raising was undertaken to fund the acquisition of Cabral Resources, a private company which has an option to acquire nine iron ore tenements in the Brazilian state of Bahia. RIM must pay $5.5 million in shares to acquire Cabral and $7.2 million in cash to exercise an option over the tenements. The balance of the funds raised will be allocated to development and exploration of the projects. With exploration and some consolidation, RIM believes it can identify more than 1 billion tonnes of beneficiable magnetite iron ore on the tenements, which are close to a new railway linking to a new open access deep water port being funded by the Brazilian government.
RMC Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
