Australia approved Baogang's buying shares from Bungalow for at most A$40mln

Published: 19 Nov 2009 23:46:42 PST

Nov. 20 MetalBiz--Australia’s iron ore producer, CentrexMetalsLtd (CXM.AX）on November 19 released the statement claiming that Australia Foreign Investment Review Board has approved Baogang Group buys 50% shareholding right from Bungalow for at most A$40mln.

The company also said that National Development and Reform Committee also has approved this deal, currently Baogang is applying for remittance details to State Administration of Foreign Exchange.

According to the agreement, Baogang Group will first pay A$8mln, used for exploiting the ore deposit, and later on the group can obtain 10% iron ore right of deposit.

After that, Baogang will inject the investment of A$8mln and A$24mln twice, and with the completion of investment, it will obtain another 10% and 30% deposit right, and finally the group can get 50% right.

Baogang Group’s subsidiary, listed Baogang (600010.SH)'s morning quotation was 4.53 yuan, up by 0.89%.