China’s state-owned CITIC Metal, Ivanhoe Mines’ (TSX:IVN) largest shareholder, is investing an additional C$612 million (roughly $454m) in billionaire Robert Friedland’s company at C$3.98 per share, a premium of 29% over the last closing price.
CITIC Metal’s second major investment in less than a year, paired with Ivanhoe Mines’ current cash balance of about $512 million, will increase the Canadian company’s total cash on hand to C$1.3 billion ($1.0 billion), the parties said.
Ivanhoe needs to raise $1.1 billion to build its Kamoa-Kakula mine in the Democratic Republic of Congo, which will produce an initial 6 million tonnes a year. The project, has the potential to become the world’s second-largest red metal mine.
Friedland, who made his fortune from the Voisey’s Bay nickel project in Canada in the 1990s, has said that the capacity of the project’s first phase could later be easily tripled.
More to come…
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