Aquila Resources Ltd., developing an iron ore project in Australia, rose the most in almost two weeks in Sydney trading after China’s Baosteel Group Corp. bought a stake.
Perth-based Aquila gained 1.9 percent to close at A$2.16, the biggest increase since Dec. 6. A party related to Baosteel bought 19 million shares, or about a 4.6 percent stake in the company, Aquila said today in a statement.
Baosteel, the parent company of China’s largest listed steelmaker, first acquired a 15 percent stake in Aquila in 2009. The steelmaker’s purchase of the additional shares is a sign of support for the company’s West Pilbara project, Aquila said today.
Alex He, a spokesman at Shanghai-based Baosteel, didn’t immediately answer a call to his mobile phone.
The purchase of additional shares would make Baosteel Aquila’s second-largest investor, after Aquila’s Chairman Anthony Poli, according to data compiled by Bloomberg.