Western Plains Resources Ltd (ASX:WPG) and Wugang Australian Resources Investment Pty Ltd, an Australian subsidiary of Wuhan Iron & Steel (Group) Co (WISCO) (SHA:600005), have executed transaction document agreements to establish a 50/50 joint venture to complete a feasibility study and, if this is positive, to develop one or more of the six known magnetite deposits in WPG's Hawks Nest tenements south of Coober Pedy in South Australia. WISCO has agreed to sole-fund a minimum commitment of A$25 million to earn a 50 per cent participating interest in the joint venture.
Sydney, June 12, 2009 AEST (ABN Newswire) - US shares ended higher overnight despite oil prices continued its rising streak. Investors were inspired by data showing that US retail sales rose in May and new unemployment claims fell for the fourth consecutive week.
The Australian share market yesterday closed at a fresh seven-month high as resource stocks posted strong gains amid renewed attention to the proposed tie-up between Rio Tinto and BHP. The benchmark S&P/ASX200 index was up 22.8 points, or 0.57 per cent, to 4047.2, while the broader All Ordinaries index advanced 30.4 points, or 0.76 per cent, to 4046.7.
Key Economic Facts and Figures
The Bureau of Statistics reported yesterday Australia's unemployment rate jumped 0.2 per cent higher to 5.7 per cent in May, reversing the previous month's confounding fall of 0.2 per cent. The increase in unemployment was because of more people looking for work or entering the workforce for the first time. Many economists believe the jobless rate could hit 8 per cent by the end of the year.
The International Monetary Fund has revised its 2010 growth forecast sharply upwards, a source said. The IMF raised global growth estimates for 2010 to 2.4 per cent from 1.9 per cent, and confirmed its April forecast for a 1.3 per cent contraction in 2009.
M&A News
China Minmetals' $US1.39 billion deal with OZ Minerals (ASX:OZL) has been approved by shareholders. Investors voted overwhelmingly in favour of the asset sale at the miner's annual general meeting yesterday.
Poseidon Nickel (ASX:POS) has agreed to sell the gold rights on its Western Australian tenements to Triton Gold. Triton Gold intends to proceed with an IPO and apply for a listing on the Australian Securities Exchange in the near future.
Important Corporate News
It is reportedly BHP Billiton (ASX:BHP) has reached an agreement with Japan's second-biggest steelmaker JFE for a 33 per cent cut in iron ore fines and a 45 per cent drop in lump iron ore. The cuts are in line with Rio Tinto's (ASX:RIO) pricing with its non-Chinese Asian customers.
Electrical goods retailer Clive Peeters (ASX:CPR) says the company will remain open to the prospect of raising capital and reducing our reliance on debt, but the current market conditions make it very difficult for small-cap listed companies to raise funds. A review by accounting firm KPMG was almost complete and its results would be announced soon.
Western Plains Resources Ltd (ASX:WPG) and Wugang Australian Resources Investment Pty Ltd, an Australian subsidiary of Wuhan Iron & Steel (Group) Co (WISCO) (SHA:600005), have executed transaction document agreements to establish a 50/50 joint venture to complete a feasibility study and, if this is positive, to develop one or more of the six known magnetite deposits in WPG's Hawks Nest tenements south of Coober Pedy in South Australia. WISCO has agreed to sole-fund a minimum commitment of A$25 million to earn a 50 per cent participating interest in the joint venture.
Foster's Group (ASX:FGL) has named David Dearie as managing director of its Australasian wine business, overseeing the company's units in Australia and New Zealand. The Australasian wine business was created following a strategic review of the Foster's wine operations, completed in February.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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