Upcoming mining company IMX Resources Ltd reported on Monday that the Australian government has given its go signal for China's Sichuan Taifeng to increase its stake on the Perth-based company and invest as well to its South Australian iron ore, copper and gold exploration projects.

IMX said that the Foreign Investment Review Board (FIRB) had approved Sichuan Taifeng's purchase of about 19.9 percent of stakes in the company, which would allow them to issue about 21.7 million shares in the market at 48.4 cents per share, raising an estimated $10.5 million.

The company revealed that once the placement has been completed, Sichuan Taifeng would have invested a total of $25.05 million in IMX, adding that it would also place 7.8 million shares with OZ Minerals Ltd to effectively maintain OZ's original 13 percent shareholding and raise some additional $3.7 million.

IMX also said that the Chinese firm also got the nod of FIRB to acquire 49 percent interest in Outback Iron, and IMX subsidiary, for $24 million but it was prevented from taking a 50 percent stake in the same company as originally applied for.

The company said that Outback's Cairn Hill project in South Australia would necessitate both the approval of the Defence Department and the Treasury Ministry though IMX has hinted that land access of the project has been determined by defence as not a threat to national security interests.

IMX added that the deal would also require the approval of China's National Development and Reform Commission as company managing director Duncan McBain affirmed that "the final approval is very important for IMX as it allows, with minor modifications, the original agreement to be implemented thus realising the full potential from our Cairn Hill projects and placing IMX in an exceptional position for growth."

Mr McBain lauded Sichuan Taifeng for showing flexibility into the agreement which allowed IMX to commence the project even before the arrival of FIRB approval, as he added that first shipment of magnetite-copper ore from Cairn Hill should start shipping out by the fourth quarter of the current financial year.

As of 1136 AEST on Monday, IMX shares were trading at 42.5 cents, gaining by 3.5 cents or 8.97 percent from the last week's last trading day.