Consolidated Thompson Iron Mines Limited (CLM), a North American exploration and mining development company, expects to receive a $240 million investment by July 15 from Wuhan Iron & Steel (Group) Corp. (WISCO), one of China's largest steel producers, once final Chinese government approvals have been received.
On June 2, CLM announced the completion of negotiations of the detailed terms of the definitive agreements with WISCO in respect of the previously announced strategic investment by WISCO into CLM, subject to final approval of the boards of WISCO and Consolidated Thompson.
After an intense round of negotiations, both parties expect to sign the definitive agreements on or before June 5, 2009, with the closing of the investment to occur on or before July 15, 2009, following receipt of final Chinese government approvals.
The investment also remains subject to approval of the Toronto Stock Exchange.
As SteelOrbis previously reported, the agreement between the companies will provide for WISCO to make a total investment in CLM of $240 million, and in return CLM will issue 29,748,897 common shares, which represent 19.9 percent of the company's shares post transaction.