CITIC Metal Africa Investments, which is a subsidiary of CITIC Metal, has completed a major strategic equity investment of C$723-million, or $556-million, in TSX-listed Ivanhoe Mines.

The investment was initiated by CITIC Metal in June.

Ivanhoe has issued about 196-million common shares to CITIC Metal Africa through a private placement, at a price of C$3.68 apiece, making CITIC Metal Africa the largest single shareholder in the company at 19.5%.

The second-largest shareholding (17%) is held by Ivanhoe executive co-chairperson Robert Friedland.

CITIC Metal Africa and Friedland have signed reciprocal standstill agreements that prevent either of them from increasing their individual ownerships in Ivanhoe to more than 19.9% until January 2022.

Ivanhoe and CITIC have had a longstanding relationship since 2003 and have come to understand the other’s values, strategic priorities and operational and financial capabilities, the parties state.

CITIC CEO Yufeng Sun commented that the investment in Ivanhoe reflects CITIC’s strong belief that the long-term prospects for the mining industry are positive, especially given the projected robust future demand for key metals, such as copper for renewable energy infrastructure and electric vehicles.

BOARD CHANGES
Meanwhile, Ivanhoe on Wednesday also announced that CITIC Metal Group president Yufeng Miles Sun has been appointed nonexecutive co-chairperson of Ivanhoe.

Further, former Companhia Brasileira de Metalurgia e Mineração CEO Tadeu Carneiro has also been appointed to the board.

They were nominated by CITIC Metal pursuant to the terms of CITIC Metal Africa’s equity investment in Ivanhoe.

“We are delighted to welcome Miles and Tadeu as Ivanhoe directors. Their decades of experience in the resources industry, especially in developing international mining businesses in emerging markets, will be extremely valuable assets as we work to bring our projects into production,” commented Friedland.