JOHANNESBURG (miningweekly.com) – TSX-listed Ivanhoe and its joint venture partner Zijin Mining Group have transferred a further 15% interest in the Kamoa-Kakula copper project to the Democratic Republic of Congo (DRC) government.
The government now owns 20% of the project, while Ivanhoe and Zijin each hold an indirect 39.6% interest and Crystal River Global an indirect 0.8% interest.
“This is an historically significant event for the people of the DRC. We now are united as partners committed to working closely together toward our shared objective of ensuring that the major copper discoveries we have made at Kamoa and Kakula during the past eight years can be predictably, efficiently and expeditiously developed into a world-scale mining venture with a lifespan of multiple generations,” said Ivanhoe chairperson Robert Friedland.
CEO Lars-Eric Johansson added that the agreement “paves the way to fulfil Kamoa-Kakula’s promise of decades of substantial, long-lasting economic and social benefits for the Congolese people and the strengthening of the national government’s capacity to support the development of international trade and building of the country”.
Kamoa Holding will transfer 300 Class A shares in the capital of Kamoa Copper − representing 15% of Kamoa Copper’s share capital − to the DRC government, in consideration for a nominal cash payment and other guarantees.
Kamoa Holding will also be required to provide all shareholder loans to Kamoa Copper and/or procure financing from third parties for the development of the project.
The DRC government has reaffirmed Kamoa Copper’s mineral tenements and has guaranteed that the project will not be subject to any taxes or duties other than those legally required by the applicable statutory and regulatory provisions for the life of the project.
Kamoa Holding will have a pre-emptive right, and right of first refusal, to buy any or all of the DRC government’s shares in Kamoa Copper should it wish to divest of its interest in the project.