China's Citic Metal has confirmed to Ivanhoe Mines that it has received the necessary internal approvals for its subsidiary Citic Metal Africa to complete its second investment in the TSX-listed miner for an additional C$612-million, or $464-million.
This investment will be Citic’s second major financing in less than a year, bringing its total investment in Ivanhoe to about $1-billion.
It is expected to close no later than September 7.
On May 15, Zijin Mining exercised its antidilution rights, which will generate additional proceeds for Ivanhoe of C$67-million, or $51-million, to be received at the same time as the Citic funds.
Upon completion of the financing, Citic will own about 29.4% of Ivanhoe’s issued and outstanding common shares and Zijin Mining will own about 9.8%.
The combined proceeds of more than C$679-million, or $514-million, from Citic Metal and Zijin Mining positions Ivanhoe to fully finance its share, about $55-million, of the capital costs required to bring the Kakula mine, in the Democratic Republic of Congo, into commercial production.
Initial copper concentrate production from the mine is currently scheduled to start in the third quarter of 2021.