China’s Citic to buy 20 per cent stake in Canadian copper miner Ivanhoe for U$556 million
The state-run conglomerate will become Ivanhoe’s largest single shareholder after the deal
A unit of Chinese state-run conglomerate Citic Ltd will buy a near 20 per cent stake in Canada’s Ivanhoe Mines for about C$723 million (US$556 million), the companies said on Monday.
Under the deal, Ivanhoe will issue 196.6 million shares to Citic Metal through a private placement, at a price of C$3.68 per share. Citic Metal will own 19.9 per cent of Ivanhoe Mines’ outstanding common shares after the placement, becoming Ivanhoe’s largest single shareholder.
Ivanhoe said it would use the proceeds to advance projects in southern Africa, including in the Democratic Republic of Congo.
Miners including Ivanhoe have threatened legal action if their concerns over a new mining code in the country, Africa’s top copper producer, are not met. The code was set to be signed into law by Democratic Republic of Congo’s prime minister last week.