PAUL GARVEY THE AUSTRALIAN FEBRUARY 27, 2014 12:00AM
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BILLIONAIRE mining entrepreneur Robert Friedland is poised to make his first foray into South Australia, with one of his private businesses set to partner with junior explorer Apollo Minerals.
Under a deal expected to be announced today, his High Power Exploration (HPX) will put up to $2.4 million into an equity stake in Apollo and up to $3.4m for an 80 per cent interest in Apollo's exploration acreage in South Australia's north.
Friedland has established a reputation as one of the mining world's highest profile individuals, having successfully identified and sold major discoveries such as the Voisey's Bay nickel deposit in Canada and the Oyu Tolgoi copper mine in Mongolia.
The Australian understands Rio Tinto had also shown an interest in the Apollo ground.
The deal with Apollo represents Friedland's first entry into South Australia and his first exploration efforts in Australia since he established Ivanhoe Australia.
Ivanhoe Australia fell under the control of Rio Tinto in 2012 when the major took over Friedland's Ivanhoe Mines, which owned Oyu Tolgoi. Ivanhoe Australia was rebranded as Inova Resources and sold last year to China's Shanxi Donghui.
Apollo has been hunting for large-scale iron oxide copper gold deposits in South Australia's northern Gawler Craton, looking to replicate other discoveries made elsewhere in the state such as Olympic Dam, Carapateena and Prominent Hill.
Apollo's exploration efforts have already identified a number of magnetic anomalies that are likely to be followed up under the HPX joint venture.
HPX holds geophysical exploration technology that could prove well suited to conditions in the Gawler Craton.
Friedland has assembled a high-powered board at HPX, including former Gold Fields chief executive Ian Cockerill, former Rio head of exploration Eric Finlayson, former BHP geophysicist Barry De Wet and former Anglo American geoscientist Mark Gibson.
AON Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
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