Aussie stock Riversdale Mining (RIV) is a diversified mining company, listed in the top ASX 200. It has major operations in the Zululand Anthracite Colliery in South Africa and has agreed to acquire exploration tenements in Mozambique.
RIV has signed an US$800 million agreement with Chinese-based Wuhan Iron and Steel Corp, whereby the latter will purchase a 40% stake in the RIV’s Zambeze coal project in Mozambique.
Further to this, Wuhan will stump up another $200 million to acquire an 8% stake in RIV.
The funding will allow RIV to bring infrastructure and investment capabilities to the mine, which will be a boon for the company’s coking coal exports.
Australian share price for RIV has surged strongly from around $8.00 since the middle of May to over $11.00 in recent trade. With momentum still looking strong, RIV may be one of the stocks to buy. It last closed at $11.35 a share.