CITIC Metal receives internal approvals necessary to complete its C$612 million investment in Ivanhoe Mines Zijin Mining’s exercise of its anti-dilution rights will generate an additional C$67 million Funds will be used by Ivanhoe to fully finance its share of capital
June 25, 2019
CITIC Metal receives internal approvals necessary to complete
its C$612 million investment in Ivanhoe Mines
Zijin Mining’s exercise of its anti-dilution rights
will generate an additional C$67 million
Funds will be used by Ivanhoe to fully finance its share of capital
costs to bring the Kakula Mine into commercial production
BEIJING, CHINA – Robert Friedland and Yufeng “Miles” Sun, Co-Chairmen of Ivanhoe
Mines (TSX: IVN; OTCQX: IVPAF), announced today that CITIC Metal Co., Ltd. (CITIC
Metal), has confirmed to Ivanhoe that it has received its internal approvals necessary
for its subsidiary CITIC Metal Africa Investments Limited (CITIC Metal Africa) to
complete its second investment in Ivanhoe Mines for an additional C$612 million
(US$464 million).
Under terms of the agreement signed in Beijing on April 25, 2019, Ivanhoe Mines will
issue 153,821,507 common shares to CITIC Metal Africa at C$3.98 per share, a premium
of 29% over Ivanhoe’s April 24, 2019 closing price.
CITIC Metal’s US$464 million investment will be its second major financing in less than
a year, bringing its total investment in Ivanhoe to approximately US$1 billion. The CITIC
Metal investment is expected to close no later than September 7, 2019.
On May 15, 2019, Zijin Mining exercised its anti-dilution rights, also at C$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% of
Ivanhoe Mines’ issued and outstanding common shares and Zijin Mining will own
approximately 9.8%.
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.
The Toronto Stock Exchange has issued its conditional approval to the CITIC Metal
private placement and the issuance of the anti-dilution common shares to Zijin Mining.
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The Ivanhoe-CITIC Metal transaction now remains subject only to Ivanhoe Mines
shareholders’ approval, customary closing conditions, and recordals and registration
with certain Chinese government regulatory agencies.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal
projects in Southern Africa: the development of new mines at the Kamoa-Kakula copper
discoveries in the Democratic Republic of Congo (DRC) and the Platreef palladium-
platinum-nickel-copper-gold discovery in South Africa; and the extensive
redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver
mine, also in the DRC. Ivanhoe also is exploring for new copper discoveries on its
wholly-owned Western Foreland exploration licences in the DRC, near the Kamoa-
Kakula Project.
Information contacts
Investors Media
Bill Trenaman +1.604.331.9834 Kimberly Lim +1.778.996.8510
Cautionary statement on forward-looking information
Certain statements in this news release constitute “forward-looking statements” or “forward-looking
information” within the meaning of applicable securities laws. Such statements and information involve
known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements of the company, its projects, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by such forward-looking
statements or information. Such statements can be identified by the use of words such as “may”,
“would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”,
“forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved.
Such statements include without limitation: (i) all statements regarding the timing and completion of
receipt of the combined proceeds of more than C$679 million (US$514 million) from CITIC Metal and
Zijin Mining and that they are expected to be received no later than September 7, 2019; (ii) statements
regarding initial copper concentrate production from the Kakula Mine is scheduled for the third quarter
of 2021; (iii) statements regarding the receipt of Ivanhoe Mines shareholders’ approval, satisfaction of
customary closing conditions, and recordals and registration with certain Chinese government
regulatory agencies; and (iv) statements regarding the investments allowing Ivanhoe to fully finance its
share of the capital costs required to bring the Kakula Mine into commercial production.
Forward-looking statements and information involve significant risks and uncertainties, should not be
read as guarantees of future performance or results and will not necessarily be accurate indicators of
whether or not such results will be achieved. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking statements or information, including, but not
limited to, the factors discussed under “Risk Factors” and elsewhere in the company’s MD&A, as well
as the inability to obtain regulatory approvals in a timely manner; the potential for unknown or
unexpected events to cause contractual conditions to not be satisfied; unexpected changes in laws,
rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts
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with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the
failure of exploration programs or studies to deliver anticipated results or results that would justify and
support continued exploration, studies, development or operations.
Although the forward-looking statements contained in this news release are based upon what
management of the company believes are reasonable assumptions, the company cannot assure
investors that actual results will be consistent with these forward-looking statements. These forward-
looking statements are made as of the date of this news release and are expressly qualified in their
entirety by this cautionary statement. Subject to applicable securities laws, the company does not
assume any obligation to update or revise the forward-looking statements contained herein to reflect
events or circumstances occurring after the date of this news release.
The company’s actual results could differ materially from those anticipated in these forward-looking
statements as a result of the factors set forth in the “Risk Factors” section and elsewhere in the
company’s MD&A for the year ended December 31, 2018 and its Annual Information Form.