China has joined the race to find uranium in Western Australia.
It has been revealed that state-backed China Metallurgical Geology Bureau is the major shareholder in new uranium explorer Zeus Resources.
Zeus will today be floated onto the ASX after successfully raising $13.5 million to jump-start its uranium exploration projects located around WA, the West reported.
The China Metallurgical Geology Bureau (CMGB) made a $10 million investment into the company, giving CMGB a 32 per cent share in Zeus.
The $10 million subscription investment agreement was signed in July last year.
Also investing in Zeus is Hong Kong-based private company Vast Honour, who holds a 31.9 per cent stake.
It has been reported Vast Honour received its stake through a "finder's fee" after introducing the State-backed enterprise to Zeus.
Zeus’ uranium assets are scattered around WA, with many located close to the state’s largest claims.
The company’s Lake Way and Yeelirrie South projects are in close proximity to Cameco’s Yeelirrie deposit, the state’s largest deposit to date, and Toro Energy's Wiluna project, WA's most advanced uranium project.
Zeus has five other uranium projects scattered across the state, including the Narnoo deposit located close to the Energy and Minerals Australia's Mulga Rock project, which was recently named WA's second largest uranium deposit.
This deal comes as China revealed plans last year to end its suspension of new reactor approvals.
According to the World Nuclear Association 29 reactors are currently being built in the country.
In order to meet China’s growing demand for uranium, the China National Nuclear Corporation chairman said last year it would ramp up investments in overseas uranium mining exploration, focusing on Australia and Africa.