Ord River Resources (ASX: ORD) has had a A$10.8 million investment in its Copper Flats Copper Project approved by the Australian Government’s Foreign Investment Review Board (FIRB).
The investment by Chinese state owned entity Guangdong Rising Assets Management Co., Ltd (GRAM) will establish a joint venture company (JV Co) with ORD.
The first project with ORD will be the large scale Copper Flats in Western Australia.
GRAM and ORD will have 51% and 49% interest respectively and will have equal board representation.
ORD will vent 100% of Copper Flats and its licenses in its entirety into a JV Co immediately after JV Co has received GRAM’s cash contribution.
GRAM will initially contribute A$5 million in cash to JV Co immediately upon establishment of JV Co and will be used exclusively for Copper Flats.
The establishment of the JV Co is a significant step forward in developing Copper Flats as GRAM’s cash contribution will be invested in a dedicated exploration program to ascertain the potential of a copper deposit.
ORD is now planning a 2011 exploration program including drilling at Copper Flats.