Hancock Prospecting has today confirmed it will sell a 30% stake in its Roy Hill project.
The 9.5 billion dollar project that is based in the Pilbara is being sold down as the company starts talks over debt financing.
Barry Fitzgerald, executive general manager of carbon steel materials, would not confirm which companies will make up the 30% stake.
"Now that's all I'm going to say - the conjecture of the press, the different comments, the different percentages, I shan't comment on,'' he told a business conference in Perth.
"What I will say is negotiations are continuing. In terms of equity at the present time, we continue to move towards the view of selling 30 per cent but there is some flexibility depending on what the circumstance are at the time."
POSCO, the exsiting join venture partner with Hancock did day however, that they were increasing their stake from 3.75% to 15%
Mr Fitzgerald said he was confident the company would get approval for debt financing, with the company having already appointed co-lead financiers, believed to be the National Australia Bank and BNP Paribas.
It is speculated the financiers are seeking $7 billion on behalf of Hancock.
Mr Fitzgerald said today it would be a large debt raising and the company was seeking "ebt from banks around the world”.
“…we have commenced active discussions with a number of leading institutions,” he said, adding that formal talks would start once documentation had been finalised.
