China backs Russia’s IRC with $238 million investment

General Nice and Minmetals Cheerglory have agreed to buy a 36% stake in the Hong Kong-listed iron ore mining company.
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Liu Qing Chun of Minmetals Cheeryglory, Jay Hambro of IRC, Cai Suixin of General Nice and Raymond Woo of IRC celebrate the deal with Olympic medals
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<div style="text-align: left;"> Liu Qing Chun of Minmetals Cheeryglory, Jay Hambro of IRC, Cai Suixin of General Nice and Raymond Woo of IRC celebrate the deal with Olympic medals </div>

IRC, a Russian iron ore miner that has been listed in Hong Kong since 2010, has agreed a $238 million share sale to two Chinese metals traders. The proceeds will help fund development of IRC’s flagship KS mine and other projects.

The two investors are General Nice Development, one of China’s biggest iron ore importers, and Minmetals Cheerglory, a wholly owned subsidiary of China Minmetals, one of China’s biggest state-owned metals and mining companies.

They are paying an effective price of HK$0.94 a share, which is a 10% discount to the three-month average of HK$1.04. However, IRC’s price has rallied...

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