Africa: Ivanhoe Mines, an additional investment of 515 million USD

CITIC Metal and Zijin Mining will close, on August 16, 2019, an additional investment of 679 million Canadian dollars (515 million US dollars) in Ivanhoe Mines. According to an official statement, this fund will allow this mining company to fully finance its share of the capital costs required for the commercial production of the Kakula copper mine in the DRC.

Indeed, the private placement transaction received all the necessary internal approvals, as well as registrations with Chinese government regulators.

Zijin Mining Group Co., Ltd., a joint venture partner of Ivanhoe’s joint venture at Kamoa-Kakula, exercised its existing anti-dilution rights on May 15, 2019, which will earn it an additional $ 67 million (about $ 51 million) dollars) received at the same time as CITIC Metal Africa Private Placement.

At closing, the additional funds from CITIC Metal Africa and Zijin Mining will allow Ivanhoe to fully finance its share of the investment costs necessary for the commercial production of the Kakula copper mine.

In this regard, Ivanhoe states that « drilling extends the new Kamoa North Bonanza Zone to at least 550 meters, with an implied length of 2.7 kilometers of shallow and thick massive sulphide mineralization, with copper grades up to 18 meters. , 48% over 13.6 meters. Six drill rigs are drilling in Kamoa North to extend the length of the discovery and allow for a rapid resource estimate.  »

RE (READ OUT): Ivanhoe Mines, the project Kamoa-Kakula beneficiary of the 2nd funding of CITIC Metal

CITIC Metal Africa, currently the largest shareholder of Ivanhoe Mines with a 19.3% interest, will own 29.4% of the issued and outstanding common shares of Ivanhoe when the offering is completed. Robert Friedland will remain Ivanhoe’s second largest shareholder and Zijin will retain its 9.8% stake in Ivanhoe Mines.

« The existing status quo clause of CITIC Metal will be amended to a maximum participation of 29.9% and will be extended until January 8, 2023 to allow sufficient time for the Kakula mine to go into production and to allow the planned future extensions to Kamoa-Kakula, as well as the Kipushi and Platreef projects, « the statement said.

Ivanhoe says it has published, on June 10, 2019, its second annual report on sustainable development, which provides an overview of the company’s sustainability programs and initiatives in 2018. This document also highlights the significant achievements of its three development projects. and the new objectives set for the present and the activities of this undertaking.

By the end of the second quarter of 2019, Kamoa-Kakula had registered 15 million hours of work without lost time injuries, 432,000 hours of work in Kipushi, and Platreef 1.7 million hours of work with losses. working. Unfortunately, a lost-time injury was inflicted on the Platreef and Kipushi projects last July.

Emilie MBOYO