Australia approves Chinese investment in molybdenum mining company

CANBERRA, Nov. 18 (Xinhua) -- Australian regulators have given the green light to a Chinese entity to take control of molybdenum mining hopeful Moly Mines Ltd for 200 million U.S. dollars.

The Perth-based explorer said Australia's Foreign Investment Review Board (FIRB) had no objections to Sichuan Hanlong Group's proposed investment in Moly Mines through its Australian arm Hanlong Mining Investment Pty Ltd.

Australian Associated Press reports Wednesday that under the deal, Hanlong will get 207.1 million Moly Mines shares for 140 million U.S. dollars at a price of 74.7 cents per share.

Hanlong will also provide Moly Mines with an interest bearing 60 million U.S. dollars 10-year loan, which along with the funds from the share subscription, will be used to repay an interim debt facility.

The transaction is now conditional on approvals by regulatory agencies in China and Moly Mines shareholders at a meeting on December 16.