The Chinese Government has approved Guangdong Rising Assets Management’s (GRAM) proposal to invest about A$216m in Australian miner PanAust.

Investment group GRAM has received National Development Reform Commission approval for the placement agreement between the two companies announced in May, PanAust said.

Under the agreement, GRAM will acquire a 19.9% interest in PanAust by purchasing A$180m worth or shares at A$0.395 a share, and a further A$35m worth of shares at A$0.28 each.

Of the total investment, $100m of the proceeds would be used to pay back PanAust’s project debt facility for the Phu Kham operation in Laos, PanAust said.

The approval process is expected to complete within the next few weeks, PanAust said.