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CITIC loans Ivanhoe $100m

10th August 2018

By: Anine Kilian

Contributing Editor Online

     

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CITIC Metal Group has provided Ivanhoe Mines with an interim  loan of $100-million in accordance with a term loan facility that is an integral part of the long-term strategic cooperation and investment agreement  between Ivanhoe and CITIC Metal.

The interim  loan is subject to an annual interest  rate of 6% and will be repaid from the proceeds of the C$723-million strategic investment by CITIC.

CITIC in June agreed to acquire 19.5% of Ivanhoe’s shares, in exchange for the C$723-million investment.

Having drawn the $100-million facility, Ivanhoe has working capital  of about $165-million.

“Ivanhoe’s projects are three of the world’s best undeveloped mining assets. CITIC Metal Group committed to this interim funding in order that our projects continue to advance on schedule, and CITIC Metal Group has delivered.  While we do not anticipate having  to use the funds from the interim  loan before the CITIC Metal investment closes,  the funds are in our bank account,” chairperson Robert Friedland said in a statement.

Meanwhile, Ivanhoe’s  joint venture partner  at the Kamoa-Kakula project,  Zijin Mining Group, has exercised its existing antidilution rights. This will result  in additional proceeds  of C$78-million being paid by Zijin to Ivanhoe on completion of the CITIC investment.

Ivanhoe will use the combined proceeds  of more than C$800-million to be received from CITIC and Zijin to rapidly  advance its Kamoa-Kakula, Platreef and Kipushi projects.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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