MIDWEST Corporation — the newly merged Koolanooka Pellets and Kingstream Steel — embarked on its inaugural roadshow this week, to promote the company’s plans for a $540 million direct reduction iron ore pellet project.
The company has secured a draft underwriting agreement from an eastern States-based firm and a first typeset copy of a prospectus to raise $7 million.
Managing director Stephen de Belle said from Sydney this week that there was also active interest from several sub-underwriters, some locally based, and others from eastern Australia.
A final underwriting agreement will not be executed until final sub-underwriters are signed on, but Midwest expects to be able to lodge its prospectus with ASIC by May 16.
Subject to markets, the prospectus will be released by early next month, Mr de Belle said.
Midwest was formed on approval from Kingstream Steel shareholders last month.
Unable to raise capital or debt financing for its original iron and steel project, Kingstream was placed into administration in November 2001.
Success with the prospectus will help Midwest get the company trading again, perhaps by mid-July, and underpin plans to resurrect the steel project.
Mr de Belle said he believes the key to success this time around will be lower capital, a comparatively massive demand for steel products, and potential cash flow from the export of haematite ore from the initial three open pits.
Joint administrators, Norgard Clohessy partners Bryan Hughes and Vincent Smith, remain ultimate overseers of Midwest activity.
The Midwest board and management comprises chairman and director Jesse Taylor, managing director Stephen de Belle, director and former Kingstream chairman Ken Court, non-executive directors Bob Duffin and Rudi Sirr, and company secretary Brett Manning.
