Australia-based iron ore explorer Apollo Minerals has inked a new partnership with Indian conglomerate Jindal Steel and Power Limited (JSPL).

As per the agreed terms, JSPL will invest $10m in the iron ore assets of Apollo through its Australian unit Jindal Steel and Power.

Apollo will then split its iron ore properties to form a new entity, NewCo; constituting a demerger from Apollo’s non-ferrous mineral rights.

All of Apollo’s iron ore tenements in South Australia and Western Australia and interest in the Gabon iron ore project will subsequently be transferred to NewCo.

Commenting on the developments, Apollo Minerals non-executive Tony Ho stated that the new agreement with Jindal marks a transformational step for the company and that it expects that the move would allow it to maximize returns to its shareholders.

"The separation of our iron ore and base-precious metals assets is an important part of this process," added Ho.

Apollo Minerals currently operates Commonwealth Hill Project in South Australia and Mount Oscar Project in the Pilbara region of Western Australia.