China invests in Western Australian uranium

A state-owned Chinese enterprise has emerged as a key shareholder in the latest uranium explorer to be listed in Australia.

The Western Australian reports that Zeus Resources was listed on Monday after raising AUD$13.5 for uranium exploration projects in WA.

Amidst a tepid market for initial public offerings Zeus's listing was largely facilitated by Chinese investment backing, with China Metallurgical Geology Bureau (CMGB) ponying up $10 million for the fledgling explorer.

A further 31.9% of the company's equity is held by a mysterious Hong Kong-based company called Vast Honour, which obtained its stake as a "finder's fee' for furnishing Zeus with an introduction to CMGB.

Zeus focuses on uranium assets in mineral rich Western Australia, many of which are situated close to major deposits such as Yeelirrie in Cameco and the Mulga Rock project.

Zeus's China-backed listing arrives just as the Middle Kingdom forges ahead with efforts to raise the profile of nuclear power in its energy portfolio in order to mitigate the country's environmentally damaging coal dependence.

A moratorium on new reactors is about to end, and China is currently building 29 new reactors.