PERTH, Australia (AP) -- Indebted miner Oz Minerals Ltd., the world's second-largest zinc producer, has agreed to sell its gold and silver project in Indonesia to China Sci-Tech Holdings Ltd., the Australian company said Friday.
The $211 million cash transaction is expected to be completed by June, pending approval by some of Oz Minerals' lenders, China Sci-Tech's shareholders and Australia's Foreign Investment Review Board.
The deal adds to a string of foreign acquisitions by China's cash-rich metals and energy producers.
The announcement comes a day after the Australian government gave China's Minmetals approval to buy most of Oz Minerals' operations.
"The proceeds from this sale will make an important contribution to addressing Oz Minerals' refinancing issues," chief executive Andrew Michelmore said in a statement.
China Sci-Tech will pay a $10 million deposit on signing and the balance on completion of the deal for the Martabe gold and silver project in North Sumatra, Indonesia, Oz Minerals said.
The company, Australia's third-biggest miner, has said the Minmetals deal would allow it to pay its debts, with 600 million Australian dollars ($410 million) left over.