West Perth-based explorer Dynasty Metals has accepted a $5 million placement offer with each share priced at nearly double the company's last traded price.
Dynasty said it has accepted the proposed offer from Henan Rebecca Holding (Group) Inc, which is subject to shareholder and regulatory approvals.
Under the proposed deal, the Henan will purchase some 27.78 million shares at a price of 18 cents each.
Shares in Dynasty last traded at 9.5c at 13:32 AEDT.
Each share will have an attaching option, with 13.8 million of those options exercisable at 20c each before February 28 2012 and 13.8 million options exercisable at 35c, expiring on February 28 2014.
On completion of the placement, Henan will hold a 33.3 per cent stake in Dynasty and will be allowed to have two representatives on the board.
Dynasty said Henan is a diversified company with over 10,000 employees and has a controlling interest in a business, listed on the Shanghai Stock Exchange, which has a current market value of over $1.1 billion.
