Coal miner Caledon Resources said Guangdong Rising Asset Management(GRAM) has received formal approval from the Chinese state authorities for the potential acquisition of Caledon.

The necessary regulatory approvals have been received from the National Development and Reform Commission of China, Ministry of Commerce of China and the State Administration of Foreign Exchange of China, Caledon said in a statement.

GRAM is one of the largest state-owned enterprises in China and it wants to acquire coal assets to satisfy the growing demand in China. The non-solicitation agreement between Bidco, GRAM and Caledon, which was signed on 20 April 2011, was due to expire today.

"We are very pleased that GRAM has now received the necessary Chinese regulatory approvals. We continue to believe that GRAM's possible acquisition would be very positive for Caledon's shareholders and employees and we continue to work with GRAM to finalise the arrangements for the Possible Acquisition on a recommended basis," managing director of Caledon Mark Trevan said.

Related share prices
Caledon Resources (CDN) share price