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Ivanhoe, Citic Metal complete second equity investment

16th August 2019

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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TSX-listed Ivanhoe Mines has completed the second major strategic equity investment of C$612-million in the company by Citic Metal Africa Investments, a subsidiary of Chinese resource company Citic Metal.

Announced by Ivanhoe co-chairpersons Robert Friedland and Yufeng (Miles) Sun on Friday, the investment forms an integral part of Ivanhoe and Citic Metal’s long-term strategic cooperation and brings Citic’s investment in Ivanhoe to more than $1-billion in less than one year.

As a result, Ivanhoe has issued 153.8-million common shares to Citic Metal Africa through a private placement of shares at C$3.98 a share.

However, Zijin Mining exercised its antidilution rights through a concurrent private placement of shares at C$3.98 a share, which resulted in Ivanhoe issuing 16.7-million common shares to Zijin Mining and Ivanhoe receiving additional proceeds of C$67-million.

Upon completion of the financings, Citic Metal now owns 29.4% of Ivanhoe Mines’ issued and outstanding common shares and Zijin Mining 9.8%.

With Friday’s receipt of the combined proceeds of more than C$679-million from Citic Metal Africa and Zijin, Ivanhoe now holds cash, cash equivalents and a loan receivable from High Power Exploration totalling C$1.2-billion.

This strong financial position enables Ivanhoe to fully finance its share of the capital costs required to bring the Kakula mine in the Democratic Republic of Congo into commercial production, as well as advance the development of the Kipushi and Platreef mines, and the Western Foreland exploration project.

Development of the underground six-million-tonne-a-year Kakula mine is making steady progress, while construction has started on the surface processing plant.

Initial copper concentrate production from the Kakula mine is scheduled for the third quarter of 2021.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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