Queensland Bauxite (ASX:QBL) has landed $910,000 in equity funding from a Chinese investment group in a placement at $0.014 per share to finance further development of the potentially 2015 producing South Johnstone Bauxite project.

In cash strapped commodity markets, China Bauxite Trading & Investments Company (CBTIC) will make the investment, founded by a former China Non Ferrous Metal Corporation executive.

QBL will issue 65,000,000 ordinary shares at $0.014 per share with attaching 5 million options exerciseable at $0.03 per share exerciseable on 28 February 2018 to CBTIC.

This is at the same share price as the current non-renounceable issue on offer to QBL shareholders of one share for every four shares held at an issue price of $0.014 per share.

The placement is being made under ASX Listing Rule 7.1 which provides a window for a company to place a percentage of their issued capital if previously approved by shareholders.

The issue will require an ASX waiver being granted. QBL said it anticipated the placement could take place on Friday 6th March.

QBL said it had been approached by a number of groups wishing to invest in the bauxite developer but favoured CBTIC given the background of its executives and their experience with Chinese state owned enterprises.

CBTIC was founded by Yongjin Li who spent 15 years working for China Non Ferrous Metal Corporation (CNNC), the former parent company of CHINALCO, CNMC, JNMC and Minmetals.

Li spent 15 years working for CNNC and was a Project Manager in charge of importing and exporting of non-ferrous metal for their alumina refineries.

He also held the position of marketing manager with Sino Metal, which is CNNC’s Australian subsidiary.

QBL is looking to fast track development of South Johnstone given favourable bauxite demand.