TORONTO (miningweekly.com) – Africa-focused project developer Ivanhoe Mines and China-based Zijin Mining Group have closed a $85-million private placement, boosting the miner’s working capital and available funds for general corporate purposes and advancing the company’s three main projects.
Zijin acquired a 9.9% stake in Ivanhoe’s issued and outstanding common shares after it issued 76.8-million shares at C$1.36 apiece.
Ivanhoe executive chairperson Robert Friedland characterised the transaction as having taken place at an “opportune time for both companies”.
"Zijin's confidence and support is a further, welcome affirmation from a major, established resource industry player of the inherent quality of Ivanhoe's exploration discoveries in sub-Saharan Africa and their potential to help meet future international demand for precious and base metals," Friedland noted.
The shares Zijin bought were subject to a hold period in Canada of four months and Ivanhoe had also granted Zijin antidilution rights to enable it to maintain its 9.9% interest in the event of any future equity financing.
Ivanhoe planned to develop its 64%-owned Platreef platinum/palladium/rhodium/gold/nickel/copper mine in three phases, with an initial production rate of four-million tonnes a year by 2019. Output would rise to eight-million tonnes and then 12-million tonnes a year in the second and third phases.
In the Democratic Republic of Congo, Ivanhoe held a 95% stake in the Kamoa copper project and a 68% stake in the Kipushi zinc/copper project.
Friedland had previously highlighted that Ivanhoe and Zijin were in “detailed, friendly” discussions about the strategic codevelopment of the Kamoa project.