Mining investment entity OM Holdings (ASX:OMH) has announced that it will acquire a 10% stake in ASX-listed iron ore producer Northern Iron (ASX:NFE) for nearly $41 million.
OM Holdings has agreed to acquire 28.25 million shares at $1.45 per share – NFE is currently trading at $1.40.
The companies have also agreed to negotiate on a formal marketing agreement over NFE’s sales in Asia, OM Holdings said.
The acquisition will be initially funded from existing cash reserves, but OM Holdings said it was investigating other financing options.
OMH shares have today fallen 2.08% to $1.88.