Shares in Perth-based Venus Resources surged as much as 67 per cent after it signed two binding deals, valued at $12 million, with a subsidiary of Shandong Provincial Bureau of Geology and Minerals.
The agreements have been entered into with HD Mining and Investment Pty Ltd.
The first deal covers a farm-in agreement where HD has agreed to sole spend $8 million over two years in order to earn a 50 per cent interest in Venus' Yalgoo iron ore tenements in the Mid West.
Venus will be manager of all exploration during the sole funding period, and once HD has earned 50 per cent, a joint venture will be formed.
Under the second deal, HD has agreed to subscribe for 2 million shares at a premium of $2 each to raise $4 million for Venus.
Venus said $2 million has already been deposited into an account pending approval from the Foreign Investment Review Board within 60 days, or the monies will be refunded.
However if Chinese regulatory approvals are not obtained within 60 days, Venus said the $2 million is non-refundable.
News of the deals sent shares in Venus up 40 cents, or 67 per cent, to a high of $1 before easing to 83.5c at 12:40 AEDT.
