CITIC loans Ivanhoe $100m
CITIC Metal Group has provided Ivanhoe Mines with an interim loan of $100-million in accordance with a term loan facility that is an integral part of the long-term strategic cooperation and investment agreement between Ivanhoe and CITIC Metal.
The interim loan is subject to an annual interest rate of 6% and will be repaid from the proceeds of the C$723-million strategic investment by CITIC.
CITIC in June agreed to acquire 19.5% of Ivanhoe’s shares, in exchange for the C$723-million investment.
Having drawn the $100-million facility, Ivanhoe has working capital of about $165-million.
“Ivanhoe’s projects are three of the world’s best undeveloped mining assets. CITIC Metal Group committed to this interim funding in order that our projects continue to advance on schedule, and CITIC Metal Group has delivered. While we do not anticipate having to use the funds from the interim loan before the CITIC Metal investment closes, the funds are in our bank account,” chairperson Robert Friedland said in a statement.
Meanwhile, Ivanhoe’s joint venture partner at the Kamoa-Kakula project, Zijin Mining Group, has exercised its existing antidilution rights. This will result in additional proceeds of C$78-million being paid by Zijin to Ivanhoe on completion of the CITIC investment.
Ivanhoe will use the combined proceeds of more than C$800-million to be received from CITIC and Zijin to rapidly advance its Kamoa-Kakula, Platreef and Kipushi projects.
Comments
The login details you entered is incorrect. Please try and re-enter your username and password. If you continue having problems, please contact us at subscriptions@creamermedia.co.za for assistance.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.