Australian gold mining firm Noble Mineral Resources Ltd is poised to receive A$85 million ($88 million) from Chinese firm Zhongrun Resources Investment Corp as it approved the latter's increased stake ownership bid into the company to 42 per cent.

The binding agreement, which prompted shares of the Australian company to jump 25 per cent, makes Zhongrun Resources its largest shareholder.

Zhongrun Resources agreed to buy new ordinary shares in Noble Mineral via a conditional placement to be executed in two separate tranches. The first involves 101.8 million shares at A$0.16 per share, or A$16.3 million worth; and, 380.0 million shares at A$0.18 per share, A$68.4 million worth.

The second tranche provides Zhongrun Resources options to subscribe additional 240.9 million shares at A$0.23 per share,or A$55 million, over the next three years. Should Zhongrun opt this, its holding stake in Noble Mineral will grow to 51.6 per cent.

A privately owned Chinese investment group, Zhongrun Resources is a $1 billion company with major interests in several mining companies listed at Toronto and London.

Zhongrun Resources is listed on the Shenzhen Stock Exchange. It is based in Jinan, Shandong Province in the People's Republic of China.

Zhongrun Resources' buy into Noble Mineral follows a string of Chinese participation in gold miners such as the plan of Shandong Gold Group to acquire a majority stake in Australia's Focus Minerals Ltd.

China National Gold Group Corp is likewise talking with African Barrick Gold Plc for stake ownership.