Guangsheng buys into miner

SHANGHAI: China's Guangdong Guangsheng Non-ferrous Metals Group (Guangsheng) will buy a 19.9 percent stake in Australian miner, Pan Australian Resources Ltd, effectively becoming its largest shareholder in a deal worth $140 million. This is the second time that the Guangdong-based group has succeeded in acquiring a stake in a non-ferrous metal firm from Australia.

According to the deal inked yesterday, Guangsheng will purchase as many as 460 million shares of Pan Australian at $0.31 apiece. The deal is still subject to approvals from the Foreign Investment Review Board of Australia, the Chinese government, and board members of Pan Australian.

If the deal goes smoothly, Guangsheng will have five listed firms under its belt, including three Chinese companies, Shenzhen Zhongjin Lingnan Nonfemet Co, Fenghua Advanced Technology, and Guangdong Fenghua Hi-tech Co Ltd; and two Australian companies, Perilya Limited and Pan Australian.