CITIC Metal has received all necessary internal approvals to complete its previously announced C$612 million investment in Ivanhoe Mines.
CITIC Metal has received all necessary internal approvals to complete its previously announced C$612 million investment in Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF).
According to Ivanhoe, the fresh funds will be used to finance its share of capital costs related to bringing the Kakula copper mine into commercial production.
As stated in the press release:
On May 15, 2019, Zijin Mining exercised its anti-dilution rights, also atC$3.98 per share, which will generate additional proceeds for Ivanhoe of C$67 million (US$51 million), to be received at the same time as the CITIC Metal funds.
Upon completion of the financings, CITIC Metal will own approximately 29.4 percent of Ivanhoe Mines’ issued and outstanding common shares and Zijin Mining will own approximately 9.8 percent.
The combined proceeds of more than C$679 million (US$514 million) from the CITIC Metal and Zijin Mining investments positions Ivanhoe to fully finance its share (approximately US$550 million) of the capital costs required to bring the Kakula mine into commercial production. Initial copper concentrate production from the Kakula mine currently is scheduled for the third quarter of 2021.