The FIRB has granted Chinese-based Wuhan Iron & Steel permission to invest $271 million in iron ore developer Centrex Metals (ASX:CXM).
Wuhan has been cleared to purchase a 60% stake in the iron ore rights to five Centrex-owned testaments in South Australia’s Eyre Peninsula.
The transaction will see Wuhan taking a 15% stake in Centrex for $10.1 million, and taking a seat on the expanded six-person board.
Wuhan will also provide a $186 million capital injection to Centrex, and sole funding for the first $75 million injection into the Centrex-WISCO JV operating the mines.
Centrex had initially announced that the metals in the sites are potentially worth between $500 million and $1 billion, but later removed this information at the request of the ASX to enable compliance with listing rule 5A.