(CNN) -- Australian mining company Oz Minerals said it has reached a US $1.2 billion deal with China-based Minmetals that could overcome the Australian government's rejection last week.
Under the new proposal, to be approved by Oz Minerals' shareholders, the company will retain the Prominent Hill copper-gold mine in South Australia as well as assets in Cambodia and Thailand.
Last week, Australian Treasurer Wayne Swan rejected a A$2.6 billion (US $1.8 billion) proposal by Minmetals to take over 100 percent of Oz Minerals, citing national interest because of Prominent Hill's location in the Woomera Prohibited Area weapons testing range.
He said no deal could get approval, if it included the sale of Prominent Hill.
The new deal would immediately give Oz Minerals a cash balance of A$600 million (US $417 million), according to a release to the Australian Securities Exchange (ASX).
The completion of the deal is set for June.