Hong Kong based Fortune Oil has acquired a 35% stake in a company that owns three iron ore mines in Armenia.

Wednesday’s deal will see the London-listed group pay $24 million for a 35% equity interest in Bounty Resources Armenia Ltd, which owns mines with proven, probable and inferred reserves of 1,832 million tons.
Fortune has the option to increase this holding to 50% for an additional $16 million investment. Bounty’s first mine, Hrazdan, contains high quality iron ore at 40% iron concentration and is expected to be profitable in 2014.

The move follows a decision by Fortune last November to diversify its established gas production and oil processing operations. Under a new strategy it is planning to capitalize on the demand for energy and resources in China by investing in high growth commodities such as oil, gas, coal, iron ore, copper and other metals, in countries, which are close to China.