Grange gears up to sell Southdown stake

Company News

Grange Resources Limited (ASX:GRR) is gearing up to sell at least a 30 per cent stake its Southdown iron ore project in Western Australia.

The magnetite producer says it has appointed Deutsche Bank as corporate adviser to assist in the sale process and secure sufficient equity.

Managing Director Russell Clark says the proposed sale provides a terrific opportunity for a suitable strategic investor requiring long term offtake of a premium quality pellet feed.  

Earlier this year Mr Clark said selling down the project would see debt and equity requirements reduced by the same amount and also assist Grange in funding the Southdown export venture.

In the full 2011 calendar year Grange Resources posted a net profit of $216.6 million.

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