MMK, Flinders launch appeals

Flinders and Russia’s Magnitogorsk Iron and Steel Works both launched appeals against a court injunction halting the merger between the two companies this week.

Magnitogorsk’s appeal is the result of a Russian arbitration court denying the company’s request to throw out an injunction filed by a minority shareholder who is opposing Magnitogorsk’s $55 million takeover of Flinders, MiningWeekly.com reports.

Flinders, whose shareholders have already voted in favor of Magnitogorsk’s offer, said that the appeals court will likely hear both companies’ appeals by the end of April, with a judgment to be rendered before the end date of the scheme implementation agreement.

Meanwhile, as the takeover, which began in November, plays out, Flinders has achieved important goals at its flagship Pilbara iron-ore project, including the granting of a mining lease over the hematite resources, and the signing of a Native Title Mining Agreement with the Wintawari Guruma Aboriginal Corporation, according to MiningWeekly.com.

Flinders will move forward with mine studies, environmental approvals and a widespread Asian marketing campaign while the appeals are considered.

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