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Ivanhoe reaffirms commitment to sell 15% in DRC project to govt

17th June 2015

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – TSX-listed Ivanhoe Mines on Wednesday reiterated its commitment to sell further interest of up to 15% in its Kamoa copper project, in the Democratic Republic of Congo (DRC), to the government.

This was despite the fact that the sale would dilute China-based Zijin Mining Group’s and Ivanhoe’s interest in Kamoa Copper SA – the holder of the Kamoa copper project exploitation permits, or mining licences.

Zijin planned to buy a 49.5% share interest in Kamoa Holding, the transaction of which would close on July 31, and would possibly arrange project financing for Kamoa's first phase.

Ivanhoe was currently awaiting a response from the DRC government following an undisclosed tabled proposal during a series of meetings to finalise the sale.

“While the recent meetings also discussed Zijin's planned investment in the Kamoa project, the two transactions are separate matters and Ivanhoe's legal advice confirms that there is no basis for delaying the Zijin transaction pending settlement of the increased DRC State interest in Kamoa Copper SA,” the company assured shareholders in a statement.

The DRC government has held a 5% free-carried interest in Kamoa Copper SA since 2012.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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