Zijin Mining to Acquire 9.9 Percent Stake in Ivanhoe Mines

This week, Ivanhoe Mines (TSX:IVN) reported that China-based Zijin Mining Group will buy a minority stake in Ivanhoe Mines. Additionally, Zijin will invest roughly C$105 million to help advance Ivanhoe’s African projects.

As quoted in the press release:

Under terms of the agreement signed in Hong Kong, Ivanhoe Mines will issue 76,817,020 common shares to Zijin through a private placement at a price of C$1.36 per share, yielding gross proceeds of approximately C$105 million (US$82 million). Ivanhoe Mines will use the proceeds for working capital and general corporate purposes, including the advancement of the company’s projects in southern Africa.

Approximately 9.9% of Ivanhoe Mines’ issued and outstanding common shares will become owned by a wholly-owned subsidiary of Zijin when the placement is completed.

Mr. Friedland said Zijin’s decision represents the first major commitment by an international mining company to provide support for all of Ivanhoe’s development-stage projects in South Africa and in the Democratic Republic of Congo.

Ivanhoe chairman, Robert Friedland, said:

We are delighted to welcome Zijin Mining both as an old friend of Ivanhoe Mines and a strategic investor that shares our long-term vision. We also have agreed to continue to explore additional opportunities to collaborate on the advancement of all three of our world-class projects. In particular, Ivanhoe and Zijin are in detailed, friendly discussions about the strategic co-development of our Kamoa copper discovery in the Democratic Republic of Congo. Kamoa’s significance was further affirmed earlier this month when Ivanhoe’s Kamoa Discovery Team received the prestigious 2015 Thayer Lindsley Award from the Prospectors & Developers Association of Canada, recognizing Kamoa’s distinction as the year’s top global mineral discovery.

Click here to read the Ivanhoe Mines (TSX:IVN) press release