R/€ = 16.34 Change: 0.02
R/$ = 14.24 Change: 0.02
Au 1232.54 $/oz Change: 0.04
Pt 832.50 $/oz Change: 4.25
 
 
R/€ = 16.34 Change: 0.02
R/$ = 14.24 Change: 0.02
Au 1232.54 $/oz Change: 0.04
Pt 832.50 $/oz Change: 4.25
 
 
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CITIC Metal gets internal green light to buy 19.5% stake in Ivanhoe

9th July 2018 BY: Marleny Arnoldi
Creamer Media Online Writer

China State-owned investment company CITIC’s subsidiary CITIC Metal has completed its confirmatory due diligence and has received the necessary internal approvals to complete the long-term, strategic cooperation and investment agreement with TSX-listed Ivanhoe Mines.

The attainment of this milestone followed a high-level site visit by senior CITIC and Ivanhoe representatives to inspect Ivanhoe’s three world-scale mine development projects Kamoa-Kakula, Platreef and Kipushi, all in Southern Africa.

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Under the terms of the agreement signed, in Beijing, in June, Ivanhoe will issue about 196-million common shares to CITIC Metal, or its designated affiliate, through a private placement at a price of C$3.68 apiece, yielding gross proceeds to Ivanhoe of about C$723-million, or $560-million.

Upon completion, CITIC Metal will own about 19.5% of Ivanhoe’s issued and outstanding common shares.

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CITIC Metal will have the right to nominate two directors to Ivanhoe’s expanded 11-member board.

Ivanhoe has, in the meantime, accepted CITIC Metal’s nomination of CITIC Metal group president Yufeng Sun as co-chairperson of Ivanhoe. He will share the position with Ivanhoe executive chairperson Robert Friedland.

Meanwhile, Ivanhoe’s joint venture partner in the Kamoa-Kakula project, Zijin Mining Group, has exercised its existing antidilution rights, which will result in additional proceeds of C$78-million, or $60-million, that Ivanhoe will receive concurrently with the completion of CITIC Metal’s investment.

Ivanhoe intends to use the combined proceeds, totalling more than C$800-million, to rapidly advance its Kamoa-Kakula, Platreef and Kipushi projects.

The CITIC Metal transaction remains subject to customary closing conditions. 

EDITED BY: Chanel de Bruyn Creamer Media Senior Deputy Editor Online
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