A joint venture with China is in the offing for South Australia as Adelaide-based IronClad Mining Ltd has announced Wednesday that MCCM Capital Management Co Ltd is set to buy the mining firm's stakes offering that could reach up to 4.4 million shares.

IronClad told AAP that MCCM Capital will infuse about $35 million in its Wilcherry Hill iron ore project and the company is also set to offer more than 4 million shares in order to fund a substantial feasibility currently conducted on the same project site.

The mining company said that an initial tranche of 2.2 million shares will be made available for $1.50 each to raise a seed fund of $3.3 million, while another 2.2 million shares, with still undetermined price tag, will be issued once the two entities entered a share subscription agreement.

As a result of the joint venture, MCCM Capital will acquire the right to assign a director on IronClad's board, which saw its shares declining by 5 percent at $1.52 while its parent company's shares, Trafford Resources Ltd, nudged a bit up by 6.49 percent or at 82 cents.

IronClad revealed that the Chinese entity sourced its funds from Asia Pacific institutional investors and private Chinese steel companies, adding that MCCM Capital is set to support the Australian mining industry by way of capital, technology and marketing strategy.

The joint venture is also poised to connect Chinese consumers to Australian mining and trading companies, and will require the thumbs up from IronClad shareholders with the necessary affirmation from the Australian and Chinese governments.

IronClad said that they expect the initial batch of ore exports to start shipping by the end of 2010, barring any glitches from the feasibility study.

It also announced that Chinese firm, Liuzhou Iron and Steel Co Ltd from China, has agreed to purchase each year up to a million tonnes of direct shipping ore from its Wilcherry Hill project.

The mining company is projecting that initial stages of the project could reach two million tonnes of delivery each year, with an expected production that could stretch for the next three years.