Zijin Mining Group to Acquire a 9.9% Stake in Ivanhoe Mines

Ivanhoe Mines Ltd. (TSX: IVN) and Zijin Mining Group Co., Ltd., jointly announced that Zijin has agreed to make a major investment in acquiring a 9.9 percent minority stake in Ivanhoe Mines.

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.

Chen Jinghe, Chairman of Zijin Mining Group Co., Ltd., stated that Zijin Mining

is honoured to have the opportunity to invest in Ivanhoe Mines, which controls the world-class, high-grade Kamoa Copper Project, Platreef Platinum-Group-Metals Project and Kipushi Zinc-Copper Project, all three of which have great untapped potential. We believe these are among the most attractive undeveloped mineral deposits in the world. Robert Friedland and I have been friends for more than 10 years. As a geologist myself, I sincerely admire the achievements of his team in its significant discoveries in Africa.

Click here for the Ivanhoe Mines Ltd. (TSX: IVN) press release