The Foreign Investment Review Board (FIRB) of Australia has approved the $225-million investment of Chinese firm Shandong Gold in gold miner Focus Minerals Ltd.

In a statement to the Australian stock exchange on Tuesday, Focus said the $225-million investment corresponds to a 51 per cent controlling stake in the gold mining company, equivalent to 4.5 billion shares.

"The FIRB has advised Shandong Gold that there are no objections to the placement in terms of the government's foreign investment policy," Focus said in a statement on Tuesday.

Focus likewise noted that an independent expert report, prepared by BDO Corporate Finance, regarded the transaction as "fair and reasonable."

The share placement, according to BDO Corporate Finance, would deliver a number of advantages, such as immediate capital injection to support the accelerated growth of Focus' projects and operations. The capital infusion will likewise strengthen the company's balance sheet.

The transaction, expected to result in the introduction of a large, supportive investor in Shandong, will also enable the exchange of technical knowledge and access to Chinese markets for potential future equity and debt funding.

Australia, being the world's second-largest producer of the safe haven precious yellow metal gold, is a target for Chinese companies, considered the world's largest consumer of the precious metal.