Australia's Globe Metals and Mining Ltd has entered a binding agreement to form a partnership with East China Mineral Exploration and Development Bureau (ECE), the company said on Monday.

Under the binding deal, the Chinese state-owned enterprise ECE will pay 41 million AU dollars (40.29 million U.S. dollars) for a controlling stake of 51 percent in Globe, the Perth-based junior minerals explorer.

ECE will subscribe for 118.14 million shares in Globe at 34.5 AU cents (33.90 U.S. cents) per share.

Globe said its strategic partnership with ECE would give it access to Chinese capital markets, in particular, Chinese banks and funds, which would be critical in securing project finance for the Kanyika project in central Malawi in southeast Africa.

The deal will also deliver Globe access to Chinese steel mills, which consume ferro-niobium.

The transaction is subject to a number of conditions precedent, including approvals of shareholder and Chinese, Australian and Malawian governments, which are expected by January.