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Guangdong Rising Asset Management to buy shares in PanAust

Published: 27 May 2009 00:56:10 PST

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May. 27, 2009 (China Knowledge) - Guangdong Rising Asset Management Co Ltd (GRAM), a state-owned asset management company focusing on the non-ferrous metals and mining sector, announced that it has signed an agreement to purchase a 19.9% stake in Australian miner PanAust Ltd for A$180 million.

Under the agreement, GRAM will purchase 460 million new shares of PanAust and assign a director to the Australian company.

PanAust said that the proceeds from the share offering will be used to repay a US$80-million subordinated debt facility with Goldman Sachs JBWere and replenish its working capital.

GRAM's investment in PanAust is another milestone after its subsidiary Shenzhen Zhongjin Lingnan Nonfemet Co Ltd<000060> took control of 50.1% of Perilya, GRAM said, adding that the acquisition will strengthen its power in the mining sector, provide a platform for its overseas development and pave the way for development of the company's copper business.

PanAust chief executive Gary Stafford said that the strategic partnership between the two companies will help PanAust grow its business globally, especially in Asia, and will advance Chinese mine development and engineering skills.

The deal has received approval from the Australian Foreign Investment Review Board (AFIR), the Chinese government and the shareholders of PanAust. It is expected to close in late July 2009.

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