The stake purchase of Robert Friedland's High Power Exploration into Apollo Minerals showed that the billionaire is making headway into the small cap resources segment in Australia, Reuters reported.
The investments of the US-born mining entrepreneur are closely watched by the industry. Friedland gained popularity for discovering the massive nickel deposit in Voisey's Bay in Canada. He also arranged the sale of the copper mine in Oyu Tolgoi in Mongolia, the report said.
An initial investment of A$1 million or $896,200 will be made by High Power Exploration into the Australian copper prospector. Friedland's company has the option to subscribe for an additional A$1.4 million worth of shares in Apollo. With these investments, High Power Exploration gets an estimated 20% stake in the prospector that seeks to look for substantial copper deposits in the outbacks of Australia, the report said.
Privately-held High Power Exploration also assented to an alliance with Clancy Exploration Ltd in a deal valued at A$1 million last year. Clancy Exploration is another prospector based in Australia, the report said.
According to a February 27, 2014 report by Proactive Investors, the strategic alliance between the two firms intends to look for Iron Oxide Copper Gold or IOCG deposits in South Australia's Gawler Craton where Apollo holds licenses. Finding the deposits seems promising after several new iron oxide-copper-gold drills were pinpointed in February in the vicinity of Apollo's Titan base and precious metals project, the report said.
The Proactive Investors report quoted Apollo Executive Director Richard Shemesian as saying, "Apollo has conducted an extensive process to identify a strategic and joint venture partner. We have been fortunate to attract a group like HPX which has world class technology, highly skilled and experienced people, and a successful track record. It is this sort of exploration expertise, know-how and finance that Apollo requires to make discoveries in this new IOCG Frontier in South Australia."
Join the Conversation