MIM Ltd, the Australian mining company principally focused on base and precious metals, is seeking to expand its coal interests and has offered 166 million US dollars (325 million A dollars) for a 55 percent interest in the Moura opencast mine in Queensland. The stake is currently held by Coal & Allied Industries Ltd, a 73 percent-owned subsidiary of Rio Tinto, and the offer is subject to preemptive rights being waived by Coal & Allied's minority partner in Moura, Mitsui & Co. Ltd of Japan (45 percent interest).In a statement to the Australian Stock Exchange, MIM says that the acquisition of a majority stake in Moura, in addition to expanding its coal business, will give benefits including "immediate access to cash flow, immediate increases in earnings and value (and) increased robustness and diversity of earnings". In order to fund the deal, MIM says that it will raise 275 million A dollars through a share placement and fund the remainder from internal cash reserves or existing credit facilities. Trading in MIM shares was halted this Thursday (February 14) until the equity raising, underwritten by Merrill Lynch, has been completed.
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