Co-chairpersons of TSX-listed Ivanhoe Mines, Robert Friedland and Yufeng Sun, on Wednesday announced that Citic Metal, through a subsidiary, is investing an additional C$612-million in Ivanhoe at C$3.98 a share.
Zijin Mining Group has now also fully exercised its antidilution rights, also at C$3.98 a share, thereby generating additional proceeds for Ivanhoe Mines of C$67-million.
The combined proceeds of more than C$679-million from Citic Metal and Zijin Mining are expected to be received by no later than September 7, positioning Ivanhoe to finance its first two mines – Kakula and Kipushi, in the Democratic Republic of the Congo – to commercial production, and significantly advance, or achieve, production at the Platreef project, in South Africa.
Zijin Mining is Ivanhoe’s joint venture partner at the Kamoa-Kakula copper project.
Zijin’s exercise of its antidilution rights will maintain its ownership in Ivanhoe Mines at 9.8%
Friedland and Sun also announced that Zijin Mining chairperson Chen Jinghe has been nominated for election to Ivanhoe’s board of directors at its annual and special meeting of shareholders to be held on June 28.
Chen is the founder of Zijin Mining and has been its chairperson since 2000.