Sphere places further $1.3m shares with Saudi's Hadeed

The Directors of Sphere Investments Limited have today agreed to place a further 1,125,000 shares to Saudi Iron & Steel Company (Hadeed) at a price of $1.15 per share, raising $1,293,750. This is in addition to the placement of 10,300,000 shares to Hadeed announced on the 8th of March 2006 and follows the recent placement to Qatar Steel Company (QASCO) of 11,425,000 shares at $1.15 per share announced on the 25th of May, 2006.

In accordance with the terms of the agreement at the time of the previous placement, Hadeed has maintained its shareholding at the same level (in percentage terms) held prior to the transaction with QASCO and at the same price as the placement to QASCO.
Hadeed and QASCO, the two largest steel producers in the Gulf region that each have significant capacity expansions under construction, are supporting the development of the 7Mt/a Guelb el Aouj DR pellet project in Mauritania as an alternative and reliable source of DR pellets.

Hadeed and QASCO now each hold 11,425,000 shares, representing a combined total of 18% of the Company. Sphere and its JV partner SNIM, the Mauritanian iron ore company, are working with Hadeed and QASCO as strategic industry partners in developing the Guelb el Aouj Project.