China's Zijin Tongguan Investment Development Co. will acquire a London-based resource development company in a bid to expand its overseas copper mining activities.

Fujian-based Zijin Tongguan will purchase a 70-percent stake in Monterrico Metals PLC for 1.4 billion yuan (179 million U.S. dollars), according to an announcement on the Zijin Mining Group website. The Zijin Mining Group is Zijin Tongguan's largest shareholder.

Zijin Mining Group, Tongling Nonferrous Metals Inc. and Xiamen C&D Inc. hold 45 percent, 35 percent and 20 percent stakes respectively in Zijin Tongguan.

Monterrico operates exclusively in Peru, where it owns the 700 million U.S. dollar Rio Blanco copper-molybdenum project which has 731 million tons of copper concentrate reserves.

Monterrico's shares are listed on the Alternative Investment Market (AIM) of the London Stock Exchange.