China’s Shandong Gold has won approval from the Foreign Investment Review Board to take a 51 per cent stake in Perth-based miner Focus Minerals, in return for a $227.5 million investment.
Focus announced in September that Shandong intended to subscribe for 4.55 billion shares, priced at 5 cents each.
Today, Focus said that FIRB had no objections to Shandong’s investment.
The funds raised will be used to support Focus’ ambitions of increasing its output to more than 500,000ozpa through the expansion of the company’s four producing mines near Coolgardie and Laverton, new discoveries through exploration and potential project acquisitions.
As well as the four producing mines, Focus has 1,650 square kilometres of tenement holdings and an existing mineral resource of 4.3 million ounces of gold.
Focus’ board of directors has unanimously recommended shareholders support the placement.
At close of trade today, Focus’ stock was down 2.6 per cent, trading at 3.7 cents.