Tata Steel infuses fresh C$20 million in Canadian ore miner Millennium
08 Jun 2010
Tata Steel, India's largest private sector steel company has hiked its stake in Canada's iron ore explorer New Millennium Capital (NMC) from 19.9 per cent to 27.4 per cent.
Tata Steel said yesterday that its wholly-owned subsidiary in Singapore, Tata Steel Global Holding bought 14,285,714 common shares in the Calgary, Alberta-based NMC for C$1.40 each totaling C$20 million (approx 89.30 crore).
''Upon the completion of the private placement, Tata Steel now holds 40,429,270 common shares, representing 27.4 per cent of the outstanding common shares of NMC,'' Tata Steel said in a statement.
NMC would use the money to finalise outstanding DSO agreements and environmental work and to initiate gravity and magnetic airborne geophysical surveys, among others, NMC said in a statement.
Robert Martin, president and CEO of NMC, said, ''We are delighted that Tata Steel has further increased their investment in NMC. Since Tata Steel originally invested in NML in October 2008 they have proven to be a supportive partner and this private placement is a testament to the quality of our relationship.''
H M Nerurkar, managing director of Tata Steel said, "Tata Steel is very pleased with its investment in NMC and with our productive relationship. We are also pleased to expedite the DSO Project by increasing our investment…... Tata Steel views its investment in NML as being fully congruent with this proven business strategy."