Rex Minerals' Yorke Peninsula copper mine in South Australia gets $550 million funding boost from China REX Minerals aims to start building its $900 million Hillside copper and gold mine in the first half of next year after signing a financing agreement. The news has boosted Rex shares 44 per cent in early trade, up 11c at 36c. Rex has struck a non-binding memorandum of understanding with China Nonferrous Metal Industry's Foreign Engineering and Construction Co. (NFC) and its Australian-based subcontractor Arccon to finance and build the mine. NFC has agreed to fund 70 per cent of the construction cost, expected to be about $550 million, and will subcontract the engineering, procurement and construction of the project to Arccon. Rex managing director Mark Parry said it was a key step for the project. "We are extremely pleased to start what we consider to be a long term relationship with NFC from China," he said. NFC is a major highly experienced construction company with a history of successfully building processing plants around the globe. We believe NFC's experience and the link with an Australian construction company in Arccon, will be an important formula for success as we advance the Hillside Project towards production. With greater certainty about the timing and quantum of debt funding, Rex is now well positioned to continue commercial negotiations with a range of parties to secure the balance of the funding. To date these include potential iron ore offtake partners, parties seeking to provide funding to get long term access to copper supply, and other investors actively seeking involvement in Hillside including potential joint venture partners at project level. The parties are aiming to finalise the financing deal by the end of this year. The deal involves NFC building the mine for a fixed price, with Rex able to claim damages for delays to the agreed schedule. NFC is based in Beijing and has been involved in projects worldwide including in Zambia, Kazakhstan, Myanmar and Australia.