Fushan (HKG:0639) to Grab 14.34% Mount Gibson (ASX:MGX) Stake

Sydney, Sep 24, 2009 AEST (ABN Newswire) - Mount Gibson Iron Limited (ASX:MGX) has entered into two agreements with Fushan International Energy Group (HKG:0639), Shougang Concord International Enterprises Company Limited (HKG:0697), Shougang Holding (Hong Kong) Limited and various subsidiaries of those companies.

Under the first agreement, Chinese coal producer Fushan has agreed to purchase from Shougang Concord all of its shares in Mount Gibson in return for the issue of shares in Fushan valued at HK$1.188 billion.

Fushan in the second agreement will also buy from Shougang Holding all of its shares in APAC Resources Limited (HKG:1104), which has 26.03 per cent of the issued capital of Mount Gibson. The deal is valued at HK$606.1 million. Shougang will still hold an indirect stake in Mount Gibson through its shareholding in Fushan.

Following the completion, Fushan will have an interest of 14.34 per cent in Mount Gibson and 16.8 per cent in APAC.

Mount Gibson said the transaction does not affect the long term offtake agreements entered into with each of Shougang Concord and APAC in November 2008.