Chinese iron ore and real estate business Prosperity Minerals Holdings Limited announced a joint venture in relation to iron ore mining rights in Brazil. The Chinese firm has gone into a conditional agreement to acquire a 70 per cent interest in investment holding company Lead Hero for US$20 million.

Lead Hero will acquire a 50 per cent interest in UGL, a joint venture vehicle with Globest and its owner Li Ping, which will own about 602.3 sq km of exploration rights and 3.01 sq km of mining concession in the State of Ceará.

The sum payable by Lead Hero on completion of the framework agreement is USD 20 million. Completion will result in Prosperity having an effective 35% interest in the mining rights through its holding in Lead Hero. UGL will develop and operate the mines and may acquire other iron ore mines in the future. All iron ore produced by UGL will be distributed through Lead Hero.

Prosperity Minerals Holdings Limited (the ‘Group’ or ‘Prosperity’) is an iron ore trading business serving the People’s Republic of China (‘PRC’) and a specialized real estate owner and developer in the same market. It is also an investor in two cement manufacturers, also in the PRC.

The Group was floated on AIM in May 2006 and raised £115 million. Prosperity Minerals Holdings Limited was incorporated in Jersey and its main country of operation is the People’s Republic of China.

Prosperity’s iron ore trading business provides an invaluable service to iron ore suppliers around the world and to end-users, principally large steel manufacturers in the People’s Republic of China. Prosperity provides both suppliers and customers with comprehensive value-added services, including financial and logistical solutions, tailor made to their specific and individual needs.

Over the last 18 years Prosperity has gained extensive experience in the field that allowed the team to develop the contacts and good working relationships that enables it to excel in its field.

On 9 December 2010, Pro-Rise, a wholly owned subsidiary of the Company, entered into the conditional Subscription Agreement with Lead Hero, an investment holding company currently owned by the Existing Lead Hero Shareholders. Pursuant to the terms of the Subscription Agreement, on Completion, Pro-Rise will subscribe for shares in Lead Hero such that Pro-Rise will be entitled to 70% of the enlarged share capital of Lead Hero for US$20 million (approximately £12.8 million).