Brazil purchase poised to put RIM on the radar Edited by Sarah Thompson and Paul Garvey
RIMCapital?s Christmas Eve acquisition of some potentially substantial iron ore acreage in Brazil slipped through to the keeper, with investors? thoughts elsewhere at the time. Expect to hear more about it, though, with RIM signing up Southern Cross Equities for a raising for up to $40 million to complete the purchase of the assets and fund exploration work. To put that number in context, the market capitalisation of RIM ? which is changing its name to Cabral Resources ? is just $17 million. RIM?s acreage sits outside the iron ore regions that have made Vale the world?s second-largest miner, but the company has identified exploration targets that could ultimately host more than 1 billion tonnes of magnetite ore. Government plans for a railway straight through the tenements provide a potential infrastructure solution. Before the Brazilian foray, RIM was best known for its role advising China Railway Materials Corp on its takeover of West Australian iron ore play, United Minerals Corp. RIM is run by Michael Bogue, a former cohead of JPMorgan?s Asia Pacific mining and metals investment banking team. The $40 million will allow RIM to complete the Brazilian transaction and get drilling under way.
RMC Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
