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Chinese group buys into Ivanhoe’s Southern African assets

22nd June 2018

By: Marleny Arnoldi

Online News Editor

     

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Diversified miner Ivanhoe Mines and Chinese State-owned investment company CITIC’s subsidiary, CITIC Metal, have signed a long-term strategic cooperation and investment agreement, whereby CITIC Metal acquires a 19.9% stake in Ivanhoe.

CITIC Metal will invest about C$723-million, or $560-million, to help advance Ivanhoe’s three world-class mine development projects in Southern Africa, as well as provide Ivanhoe with an interim $100-million loan facility.

Under the terms of the agreement, signed in Beijing last week, Ivanhoe will issue 196-million common shares to CITIC Metal through a private placement at a price of C$3.68 apiece.

This will establish CITIC Metal as Ivanhoe’s largest shareholder.

Ivanhoe executive chairperson Robert Friedland is the second-largest shareholder, with a 17% interest.

Ivanhoe intends to use the proceeds for the advancement of its Kamoa-Kakula copper project, and its Kipushi zinc/copper project, both in the Democratic Republic of Congo, as well as its Platreef platinum/palladium/gold/nickel/copper project, in South Africa.

“CITIC Metal will be playing a significant role in Ivanhoe’s emergence as one of the world’s leading producers of copper, zinc and platinum-group metals. Today, with CITIC Metal’s commitment to this investment, Ivanhoe is one step closer to becoming Canada’s next important diversified mining company,” said Friedland.

Closing of the transaction will see CITIC Metal nominating two directors – one of whom will be independent – to Ivanhoe’s expanded 11-member board.

One CITIC Metal director nominee is expected to be CITIC Metal president Sun Yufeng, who will also become a co-chairperson.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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