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Sichuan Hanlong Group signed a series of agreements with the U.S.-based General Moly Inc to subscribe for a 25% stake in the Amex-listed firm through subsidiary firm Hanlong (USA) Mining Investment Inc to become the controlling shareholder, according to Sichuan Hanlong's website.
As part of the deal, Sichuan Hanlong will provide a loan guarantee to General Moly for a $665-million bank loan.
However, the purchase is still waiting for approval from General Moly's shareholders.
General Moly has an 80% stake in a the world's largest molybdenum mine, whose reserves in Mountain Hope, Eureka, Nevada, total 1.3 billion pounds. The remaining 20% is owned by Pohang Iron and Steel Co or POSCO, a firm based in Pohang, South Korea.
General Moly also owns a molybdenum mine in Central Nevada that has molybdenum reserves of around 500 million pounds.
A month ago, Sichuan Hanlong was approved to purchase a 55.3% stake in Moly Mines Ltd, a molybdenum company based in Australia.
Established in 1997, Sichuan Hanlong is based in Sichuan Province and has a registered capital of RMB 380 million. The investment group is engaged in minerals, properties, tourism and media.