China State-owned investment company CITIC's subsidiary CITIC Metal has completed its confirmatory due diligence and has received internal approvals necessary to complete the long-term, strategic cooperation and investment agreement with Canadian miner Ivanhoe Mines.
This followed a high-level site visit by senior CITIC and Ivanhoe representatives to inspect Ivanhoe’s three world-scale mine development projects, Kamoa-Kakula, Platreef and Kipushi, in Africa.
Under the terms of the agreement between the two companies, signed on June 11, Ivanhoe will issue about 196.6-million shares to CITIC Metal through a private placement, at a price of C$3.68 apiece, yielding gross proceeds to Ivanhoe of about C$723-million, or $560-million.
Upon completion of the share issue, CITIC Metal will own about 19.5% of Ivanhoe’s issued and outstanding common shares.
Ivanhoe will use the proceeds to rapidly advance the three African projects.