Australian miner IMX Resources Ltd has received final approval from Australia's Department of Defense for Chinese enterprise Sichuan Taifeng to increase its stake in the company, acquiring 19.9 percent of IMX, and to invest in South Australian iron ore, copper and gold mine Cairn Hill. The approval allows IMX to finalize the placement of 21.7 million shares to Sichuan Taifeng, raising $10.5 million.
With the Cairn Hill project within the Woomera prohibited area, the approval of the Department of Defence was also needed, IMX said.
Sichuan Taifeng also received approval from Australia's Foreign Investment Review Board (FIRB) to take a 49 percent interest in Outback Iron, an IMX subsidiary that holds the Cairn Hill project in South Australia, for approximately $24 million.
The transaction is also subject to consent from the Chinese National Development and Reform Commission (NDRC).
The project is expected to export 1-1.7 million metric tons of ore a year via Port Adelaide to China.