According to a recent press release, China’s CITIC Metal has completed its due diligence and has received internal approvals to proceed with the investment agreement with Canadian miner Ivanhoe Mines. The due diligence process included site visits at Ivanhoe’s three mine development projects in Africa (Kamoa-Kakula, Platreef and Kipushi).
Under the terms of the agreement between the two companies, signed on June 11, Ivanhoe will issue about 196.6-million shares to CITIC Metal through a private placement yielding gross proceeds to Ivanhoe of about C$723 million, or US$560 million. Upon completion of the share issue, CITIC Metals will own about 19.5 percent of Ivanhoe’s issued and outstanding common shares. Proceeds are slated for development of the African mines.
Ivanhoe is involved in mining non-ferrous metals such as platinum, palladium, rhodium, gold, and copper as well as steelmaking materials such as nickel and zinc.