Shandong acquires mining firm
Chinese energy company Shandong has raised funds to buy a subsidiary of Australian goldminer Stonewall Resources.
Shandong had raised $US300 million to acquire Stonewall Mining, Stonewall Resources said on Tuesday. The Chinese firm is buying two South African gold mines, expanding existing projects and providing working capital.
Stonewall Resources chief executive Lloyd Birrell said Shandong's capital raising showed it valued Stonewall Mining's projects and was interested in lifting gold production.
"Their intention to direct substantial funds towards the expansion projects signals they wish to ramp up production within a short time frame," he said in a statement.
"It is clear that they have developed an excellent understanding of Stonewall's long-term strategy to feed central processing plants from the vast number of available mines and ore bodies in the mining and prospecting areas."
Stonewall Resources shares gained 8.3 per cent, or 1¢, to close at 13¢ on Tuesday following the acquisition announcement.