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Wednesday, January 22, 2014
FeOre Sells Mongolia Iron Ore Stake for US$56.7 Million to Pay Off Debt
Ulaanbaatar, Mongolia -- January 22 (Cover Mongolia) -- FeOre Limited (ASX:FEO) comes out of trading halt with the announcement of a deal with China Energy (Cayman) Limited, an “independent private” company, for the sale of its interest in Topone Star Investments Limited, which indirectly holds 80% interest in its Ereeny and Dartsagt iron ore projects located in Mongolia.
The deal includes US$51.03 million cash consideration and an additional deferred payment of US$5.67 million upon when the buyer successfully lists the asset on the Hong Kong Stock Exchange.
FeOre intends to use the proceeds and cash balances (approximately US$20.1 million) to redeem its convertible bonds and undertake a share buy-back program.
FEO shares jumped as much as 41% to 5.8c in early morning trade. Last trading +36.59% to A$0.056 at 11:10 Sydney time (8:10 UB time)
Munkhdul Badral Bontoi
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