WISCO to acquire 19.9% stake in Canadian mining company

Wuhan Iron Steel Corp (WISCO), one of the largest steel makers in the country, has agreed to invest $240 million to acquire a 19.9 percent stake in a Canadian mining company, in a move to secure its iron ore supply.

Canada's Consolidated Thompson Iron Mines Ltd said on Monday that WISCO will make a total investment of $240 million in itself and, in return, it will issue 29,748,897 common shares to the Chinese company.

In addition, WISCO will receive not less than a 25 percent interest in a newly incorporated company that is to be established to operate the Bloom Lake mine. It will also purchase a similar percentage of iron ore produced over the life of the mine.