The privately owned Chinese-Australian investment group has established a partnership with Malachite in order to become a significant participant in the Australian mining industry.

Nanyang will join other companies in the region who have invested heavily in natural resources such as Asian heavyweights, Chinese Shenhua/ Shenhua Watermark who have bought into the coal industry across the Breeza plains.

Investors liked the news, as Malachite shares kicked 13 per cent, or 1.5c, to 13c.

Subject to conditions, Nanyang will become Malachite’s largest shareholder through an equity injection in the short term and a joint venture partner in its Conrad Silver Project.

Conrad Silver Project is located 25km south of Inverell not far from Tingha.

The project will provide workers from not just Inverell and Tingha but also Bundarra and other hamlets across the tablelands.

Malachite is evaluating the scope to reopen the old Conrad mine, which has had two previous periods of production but has not operated for more than 50 years.

Malachite managing director Garry Lowder said the joint venture partnership was a good outcome for both the company and its shareholders.

“Nanyang has stated its intention of becoming a significant player in the Australian mining industry and has chosen Malachite as the vehicle with which to achieve its aims,” Mr Lowder said.

“We are very happy to have formed this alliance and look forward to a long term, mutually beneficial relationship.”

Pursuant to the new alliance, Nanyang will subscribe for 15 million fully paid shares in Malachite at a price of $0.0855 each, raising $1,282,500 in new capital.

Nanyang will receive 7.5 million options to purchase additional shares at a price of $0.111 each at any time over the next three years and nominate a suitably qualified and experienced person to become a director of the Company.