Hanlong Mining Investment Pty Ltd signed yesterday a subscription agreement with Australia's Moly Mines Ltd to become the controlling shareholder of the Australian company.
Hanlong Mining is an Australian subsidiary company wholly owned by a privately run Chinese corporation - Sichuan Hanlong Group Ltd.
Following a US$200 million investment in Moly Mines' stock, Hanlong will become the controlling shareholder with a 55.3 percent stake in the company.
Hanlong will also provide US$500 million in project financing to develop the Spinifex Ridge Molybdenum Copper mine, which is wholly owned by Moly Mines.
The investment will require final approval from the Australian Foreign Investment Review Board and relevant Chinese authorities prior to completion.
This acquisition is the second major overseas acquisition for Hanlong Group, which previously invested in mining developments in Africa.
Hanlong Group Board of Directors representative Liu Han said it is significant for a privately held Chinese company to have gained approval to develop a mine in Australia.