firb won't be a problem

Zhongjin gets 50.1% Perilya stake nod
February 5, 2009 - 12:34PM

China's third largest zinc producer Shenzhen Zhongjin Lingnan Nonfemet Co Ltd (Zhongjin) has received Foreign Investment Review Board (FIRB) approval to take a controlling stake in cash-poor lead and zinc miner Perilya Ltd.

Zhongjin will secure a 50.1 per cent interest in the Perth-headquartered miner through a placement of 197.672 million Perilya shares at 23 cents each for $45.5 million cash.

A Perilya spokesman said FIRB had approved Zhongjin taking up to 52 per cent of Perilya's issued capital.

The transaction remains subject to Perilya shareholder approval, which will be decided at an extraordinary general meeting in Perth on Thursday.

Perilya had $19 million cash on hand at the end of December, and has been hampered by sharply lower lead and zinc prices.

Shares in Perilya were steady at 17 cents at 1207 AEDT.