Blake Dawson has acted for Northwest Nonferrous International Investment Company Ltd, a subsidiary of Chinese State Owned Enterprise, which has entered into a non-binding Heads of Agreement to acquire the Lennard Shelf Project from the listed Australian resources company Meridian Minerals Limited (Meridian) for $78 million.
Northwest is a cornerstone investor holding 41.34 per cent of Meridian, having first acquired their stake through a placement in 2009.
Blake Dawson currently advises Northwest on three other transactions in Australia.
The Lennard Shelf Project is a lead-zinc exploration project of 1000km2 located in the Kimberly region of Western Australia.
Northwest also proposes to pay $7 million for exploration costs to progress the Lennard Shelf Project prior to completion of the sale, which will be repaid if the sale does not proceed.
The acquisition is subject to a number of conditions including Meridian shareholder approval, FIRB and Chinese Government approvals, and due diligence satisfactory to Northwest.