Closely held International Base Metals Limited has secured AUD 30 million cornerstone investment from China as it looks to develop a copper mine in southern Africa.
IBML, advised by Azure Capital also hopes to use some of the funds raised through the placement to Heilongjiang Heilong Resources Investment Company to acquire stakes in other exploration assets in Namibia or neighboring countries.
IBML owns the Omitiomire deposit in Namibia which is estimated to contain a resource of more than 700,000 tonnes of copper. It also has some mining assets in Australia.
Heilong, a closely held mining company based in the northeastern Chinese province of Heilongjiang already holds 6% stake in the explorer. It also has close links to West Minerals Private Limited which has 30% interest in International Base Metals.
Following the deal, Heilong and West Minerals will together hold a controlling 53.9% stake. The deal involves Heilong making separate AUD 15 million payments to IBML by mid-2013 for shares prices at 20 cents each. It needs approval from IBML’s shareholders and Australian and Chinese regulatory authorities.