Miner and resource developer IMX Resources NL
(ASX:IXR) says China’s Sichuan Taifeng will invest $49 million into IMX and the Cairn Hill project.
The Foreign Investment Review Board has given the transaction the green light.
The investment will allow the Chinese group to acquire up to 19.9% of IMX through an immediate placement.
Sichuan Taifeng will also be able to acquire 49% of IMX subsidiary, Outback Iron, which indirectly holds the Cairn Hill operations, subject to the Department of Defence signing the amended access deed.
IMX Managing Director Duncan McBain says the Foreign Investment Review Board’s approval is significant as it paves the way for the final agreement to be implemented.
Mr McBain says the Sichuan investment will enable the Cairn Hill project to reach its full potential as well as placing IMX in an exceptional position for growth.
IMX Resources pulled itself out of the read in fiscal 2009 to post a profit following two years of losses.
