A $19.4-million investment into North American Tungsten by a major Chinese mineral producer was announced Wednesday afternoon.

The deal will result in Hunan Nonferrous Metal Corp. taking ownership of 9.9 per cent of the company, with an option to become an even larger partner and a major player in the development of the Mactung tungsten deposit.

Economic Development Minister Jim Kenyon applauded the agreement in a telephone interview from Toronto. He is in that city attending the annual conference of the Prospectors and Developers Association of Canada.

Kenyon said the Yukon has a strong presence at the conference, which is attended by close to 20,000 company, government and political representatives from around the world.

"We're not just coming down here and smiling," the minister said. "There's people coming up to us, and that's a big difference from the last few years."

Kenyon said there is mounting interest, particularly by the Chinese, in the Yukon's potential for gold deposits.

North American Tungsten operates the Cantung mine along the Yukon-N.W.T. border.

Though situated just inside the N.W.T., the only access over land is through the Yukon, and approximately 25 per cent of the 235 people working at the mine are Yukoners.

The company is advancing plans to begin developing the Mactung property, which is held out to be one of the world's largest undeveloped high-grade tungsten deposits.

Ninety per cent of the ore body is on the Yukon side of the border.

The agreement unveiled yesterday still requires the approval of the Toronto Stock Exchange.

Hunan Nonferrous is described as China's largest producer of nonferrous metals (metals which do not contain iron).

Under the agreement, in addition to the option to earn a larger piece of North American Tungsten, the foreign investor will be allowed to match any bid by a third-party company to lead the development of the Mactung deposit.

This summer, North American plans to complete a study on the feasibility of the developing Mactung deposit.

In a press release issued Wednesday, Stephen Leahy, North American Tungsten's chief executive officer, said the investment by Hunan Nonferrous validates the viability of Mactung.

North American estimates it has two more years of known tungsten reserves at the Cantung property, though exploration is ongoing.

In the press release, the company acknowledged support it received from the Yukon government in advancing the deal.

Kenyon noted that after leaving Toronto, he would be travelling to Washington, D.C. to meet with two senators from Alaska to discuss the Shakwak highway reconstruction project that affects the territory.