Kimberley Metals announced that the Australian Government Foreign Investment Review Board had no objections to Henan Yuguang Lead & Gold Company Limited's proposed strategic cooperation arrangement with Kimberley.

Recently, Kimberley entered into the arrangement through a Memorandum of Cooperation with Yuguang. The arrangements involve Yuguang taking 15% placement in Kimberley and earning 25% direct interest in JV to develop the Sorby Hills Lead, Silver, Zinc Project in Western Australia.

Kimberley has called a shareholder meeting to be held August 10th 2010 to approve the issue of 20,725,390 shares to Yuguang at a placement price of 25 cents per share so that after this placement, Yuguang will hold 15% of Kimberley’s issued shares. The USD 5 million of funding for the Sorby Hills JV will be utilized to bring the project feasibility study to completion.

Mr Jim Wall executive chairman of Kimberley said that the USD 5 million cash injection into Kimberley will be dedicated to a production start up for the Pearse Gold Project at Mineral Hill in NSW including the recommissioning of the Mineral Hill processing plant to produce both gold bullion and gold in concentrate.

(Sourced from Proactive Investors)