Petmin Plans to Raise Interest in North Atlantic Iron

Petmin Ltd. announced yesterday that it plans to increase its interest in privately owned North Atlantic Iron Corp. to 40 percent by investing a further $8 million. North Atlantic’s goal is to set up a low-cost merchant pig iron business in Canada and/or the United States.

As quoted in the press release:

This funding will be from Petmin’s own resources and no further capital will be required from Petmin thereafter. NAIC will be expected to raise the capital required for further development.

To this end, Petmin is contemplating exchanging its 40% in NAIC for 40% of the shares in a Canadian company which will own 100% of NAIC and will be listed on the TSX and JSE.

Should this occur, Petmin intends to unbundle these shares to its shareholders. Further detail will follow in this regard in due course.

Once NAIC has been unbundled, it is the intention that members of the Petmin management will remain actively involved in the development of NAIC and secure long term value for Petmin’s shareholders.

Click here to read the full Petmin Ltd. press release.