Decometal is a key part of Consolidated Minerals' network of overseas Sales channels and was instrumental in its breakthrough into the European market last year.
Consolidated Minerals signed a five-year contract with Decometal last year to supply 90,000 tonnes of manganese ore per annum for conversion to manganese alloys in Europe.
The Perth-based company's managing director, Michael Kiernan, said the decision by Decometal to take up equity in Consolidated Minerals reflected the long-term strength of the relationship between the two groups and could further enhance its position in the European market.
Consolidated Minerals announced today that Decometal had taken up a placement of 3 million shares at an effective price of 37.5c per share. The actual price was 35 cents with the balance offset against reduced sales commissions.
The placement raises $1.05 million for Consolidated Minerals and gives Decometal an immediate 3% equity interest.
"We are delighted to welcome Decometal to our share register, and we look forward to continuing a productive relationship which has already delivered us an important strategic position in the European market with a long-term sales contract," Kiernan said.
"We are currently negotiating with Decometal to extend our existing five-year contract to 10 years, which would underpin a significant proportion of our future production and further advance our goal of establishing the Pilbara manganese project as a secure and reliable long-term high grade manganese supplier."
The five-year contract signed last year accounts for 30% of Consolidated Minerals' annual production of 300,000 tonnes of lump and fines ore. This production level generates annual sales revenue in excess of A$40 million.
Decometal joins other major shareholders Lion Selection Group (31%), the Noble Group (15.0%), Portfolio Partners (12.5%), Kiernan (4.2%), and AMP Limited (6%).
