Multi-resource focused mineral exploration and investment company Red Rock Resources acquired a 5.18% stake in ASX listed Mindax Limited (ASX: MDX) at a cost of A$0.589 million.
Mindax hold tenements to the north and north-west of Red Rock's Mt Alfred project in the Eastern Goldfields of Western Australia, and is prospective for iron ore.
Red Rock said that it believed any development of iron ore production in the area will require the co-operation of the two companies, and that Mindax made an "attractive investment opportunity".
Australia is a leading producer and exporter of iron ore into China, and iron ore prices have risen robustly in recent years increasing the expenditure on exploration and development of iron ore deposits.