China Nonferrous Metal Industry's Foreign Engineering & Construction Co has grabbed a $US10m stake in Terramin Australia.

The Chinese company said the placement of 15,500,000 shares at 65c each, or a 43 per cent premium to Terramin closing price on March 26, would give it a 12.29 per cent stake in the miner.

China Nonferrous Metal Industry's, a unit of state-owned mining company China Nonferrous Metal Mining (Group) Co., said the deal signed on March 27 will boost its zinc and lead reserves.

The placement is subject to approval from regulators and both companies' boards, the Chinese company said.