Andrew Forrest may take 28% stake in Energy and Minerals Australia

The billionaire’s Forrest Family Investments will spend $12 million on shares in the uranium deposit developer.

Billionaire Andrew Forrest may take as much as 28 per cent of Energy and Minerals Australia, which is seeking to develop uranium deposits at Mulga Rock, 240 kilometres northeast of Kalgoorlie-Boulder.

Forrest Family Investments will buy 400 million Energy and Minerals Australia shares at 3 cents each, according to a statement. The $12m share sale will be accompanied by one unlisted option for each share at an exercise price of 5 cents and an expiry date of June 30, 2016.

When the securities are placed and converted, Forrest Family Investments will have a 28 per cent stake in the company.

“My investment is a strong vote of confidence in the executive team of Mike Young and Julian Tapp with whom I have had a long and successful working relationship,” Mr Forrest, who last week bought West Australian beef processor Harvey Beef in a deal worth more than $30 million, said in a statement.

Energy and Minerals Australia also said investment firms Acorn Capital and Element Resources Fund as well as Macquarie Bank have agreed to a debt-for equity-swap in which $24.5m of debt will be eliminated and converted into shares.

Macquarie will take a 21 per cent stake in Energy and Minerals Australia and Acorn will take a 23 per cent stake.  

“Energy and Minerals Australia is now set up to move the Mulga Rock uranium project forward to meet uranium demand which is expected to grow,” the statement said.

Clayton Utz advised Forrest Family Investments and K&L Gates Group advised Energy and Minerals Australia.

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