Pallinghurst Resources, the investment fund chaired by South African and former BHP Billiton chief executive officer Brian Gilbertson, and Red Rock Resources are poised to assume control of iron ore and manganese junior Jupiter Mines.

Jupiter Mines yesterday announced that Pallinghurst and Red Rock, its major shareholders, had signed an agreement that will allow shareholders to consider buying a portfolio of assets in exchange for an issue of shares.

In a statement to the Australian Stock Exchange, Jupiter said it would ask shareholders to consider the vending of a portfolio of Australian iron ore, manganese and liquid assets into Jupiter in exchange for an issue of Jupiter shares carrying effective control of Jupiter.

The portfolio of new assets being vended by Pallinghurst and Red Rock would add to Jupiter's iron ore asset base in the Central Yilgarn region of Western Australia, provide the company with a new manganese exploration target and increase its cash and share investment holdings.

In addition, Pallinghurst has advised Jupiter it has allocated an additional A$50 million to further advancing the consolidation, exploration and mining activities in the Yilgarn region.

It has also offered Jupiter the opportunity to participate in future Pallinghurst steel feed projects in Australia.

Jupiter Mines – which is focused on developing mining exploration and project opportunities in iron ore, nickel and other resources including gold and uranium – said the transaction would result in a significant expansion and diversification of its asset base.

This acquisition is one of two currently being pursued by Pallinghurst.

The other, being made through its AIM-listed subsidiary Gemfields Resources, is for precious gems miner Tanzanite One.

Repeatedly rejected by Tanzanite One, the bid values the target at £33 million. – Business Report