(Yicai Global) Sept. 15 -- Chifeng Jilong Gold Mining will invest AUD2 million (USD1.5 million) to buy a stake in Australian miner Metals Tech, with the announcement boosting the stock prices of both companies today.

Chifeng Jilong will buy 5.9 million new shares in Metals Tech for 30 Australian cents (22 US cents) each, accounting for 3.7 percent of the total share capital, Metals Tech said in a statement today.

Shares of Chifeng Jilong [SHA:600988] closed 2.6 percent higher today at CNY17.10 (USD2.70) apiece. Metals Tech [ASX:MTC] surged 15.5 percent to close at 4 Australian cents, giving the company a market cap of about AUD65 million.

The funds raised will be used on completion of resource definition drilling at Metals Tech’s flagship Sturec Gold Project in Slovakia as well as further exploration at the project, the company said.

Founded in 1998, Chifeng Jilong mines gold and non-ferrous metals. It went public in Shanghai through a backdoor listing in 2012 and owned gold resources of 52.4 tons at the end of last year. Metals Tech plans to spin off its lithium mining asset Winsome Resources for an independent listing. 

Editor: Tom Litting