Funding Deal for $6.5B Australian Port Collapses
Australian mining firm Padbury Mining's $6.5 billion deal to fund a new iron ore port and rail development on the resource-rich western coast has fallen through, the company said on Wednesday.
Earlier this month, Padbury stunned market watchers by announcing it had lined up the mega funding from unnamed Australian equity investors, prompting a spike in its share price and a swift response from regulators which halted trading in the stock until it provided more information.
After repeated delays in providing details, Padbury said the funding agreement with little known Alliance Super Holdings Pty Ltd and Superkite Pty Ltd had been scrapped, without giving a reason. Alliance Super and Superkite are controlled by Roland Bleyer, a financier and former hair clinic operator.
"Padbury will continue to actively explore all available opportunities to exploit its existing intellectual property with respect to the Oakajee Project," Padbury said in a statement.
Construction of the port in the Indian Ocean coastal stretch of Oakajee in Western Australia state has long been seen as the trigger to unearthing billions of tons of iron ore stranded by a lack of transport and export routes.
But plans for a port have repeatedly been in the works, each time failing to get off the ground owing to the massive investment needs.
Shares in Padbury remained suspended on Wednesday.
Copyright Reuters 2014.