Hong Kong-based Taifeng Yuanchuang International Development Co Ltd (Taifeng) is set to become a major shareholder in Australian Perth-based junior mineral explorer IMX Resources by paying AU$47.1 million (RMB 289 million).
Under an agreement announced on Monday, Taifeng, a subsidiary of China's Sichuan Province-based privately-owned real estate developer Sichuan Taifeng Group, will spend a minimum of AU$24.1 million on IMX shares at a price of 48.4 cents per share for a 19.9 percent stake in IMX Resources.
According to the deal, Taifeng will also contribute about $23 million to become a 50 percent equity partner in IMX's Cairn Hill Phase 1 iron ore, copper and gold project in South Australia and in other developments in this area.
The project is expected to export 1-1.7 million metric tons of ore a year via Port Adelaide to China.
The agreement is subject to the approval of regulators in Australia and China.