Ivanplats receives final $225 million prepayment under Platreef streaming agreements
September 15, 2022
Ivanplats receives final $225 million prepayment under Platreef
streaming agreements
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Updated engagement letters signed with Société Générale and
Nedbank for expanded $150 million Platreef senior debt facility
JOHANNESBURG, SOUTH AFRICA – Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF)
Executive Co-Chair Robert Friedland and President Marna Cloete announce today that
the company’s South African subsidiary, Ivanplats, has received the second and final
prepayment of the $300 million Platreef streaming agreement. In addition, the company
has signed updated engagement letters with its mandated lead arrangers, Société
Générale and Nedbank, to increase the Platreef project senior debt facility from $120
million to $150 million. The expanded facility will provide further optionality in terms of
project financing, and limit potential equity contributions for Platreef’s Phase 1
development. All figures are in U.S. dollars unless otherwise stated.
As announced on December 8, 2021, Ivanplats concluded $300 million in stream-
financing agreements with Orion Mine Finance and Nomad Royalty Company (which
was subsequently acquired by Sandstorm Gold Royalties) for its world-scale Platreef
palladium-rhodium-nickel-platinum-copper-gold project in Limpopo Province, South
Africa. This included a $200 million gold-streaming facility and a $100 million palladium
and platinum streaming facility. The first prepayment of $75 million was received upon
the closing of the transaction in December 2021.
The fully realized stream agreements allow Ivanplats to advance Platreef’s ongoing
Phase 1 construction activities, with an initial capital cost of $488 million as set out in
the Platreef feasibility study announced in February 2022. Discussions are underway to
finalize a senior debt facility of up to $150 million with mandated lead arrangers Société
Générale and Nedbank, which remains subject to due diligence.
The stream facilities are subordinated to any future senior secured financing. Ivanplats
remains flexible to raise additional debt or equity, and has pre-agreed intercreditor
arrangements with the stream purchasers for future senior debt. The stream facilities
are guaranteed by Ivanplats and secured over its assets, as well as Ivanhoe and the
Japanese consortium’s shares of Platreef.
Ivanhoe Mines’ Executive Co-Chairman, Robert Friedland commented:
“The enhanced senior debt facility speaks to the robust economics of the Platreef
project, and will allow Ivanplats to fund the Phase 1 initial capital with limited further
equity funding required from Ivanhoe’s own balance sheet.
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“Platreef is the world's greatest precious metals deposit under development, with a
peerless endowment of palladium, rhodium, platinum, and gold; as well as highly
significant quantities of strategic 'electric' metals in nickel and copper. The Phase 1
mine marks the beginning of a multi-stage, multi-generational mining complex
underpinned by vast, high-grade resources and immense, untapped exploration upside.
Future expansions to 12 million tonnes of ore per annum and beyond, as demonstrated
in previous studies, would position Platreef among the world’s largest and lowest-cost
nickel and PGM mines: producing more than 24,000 tonnes of nickel and 1.1 million
ounces of palladium, rhodium, platinum and gold per year.”
About Platreef
The Platreef Project is owned by Ivanplats (Pty) Ltd (Ivanplats), which is 64%-owned by
Ivanhoe Mines. A 26% interest is held by Ivanplats' historically-disadvantaged, broad-
based, black economic empowerment (B-BBEE) partners, which include 20 local host
communities with approximately 150,000 people, project employees and local
entrepreneurs. A Japanese consortium of ITOCHU Corporation, Japan Oil, Gas and
Metals National Corporation, and Japan Gas Corporation, owns a 10% interest in
Ivanplats, which it acquired in two tranches for a total investment of $290 million.
The Platreef Project hosts an underground deposit of thick, platinum-group metals,
nickel, copper and gold mineralization on the Northern Limb of the Bushveld Igneous
Complex in Limpopo Province – approximately 280 kilometres northeast of
Johannesburg and eight kilometres from the town of Mokopane.
On the Northern Limb, platinum-group metals mineralization is primarily hosted within
the Platreef, a mineralized sequence that is traced more than 30 kilometres along strike.
Ivanhoe's Platreef Project, within the Platreef's southern sector, is comprised of two
contiguous properties: Turfspruit and Macalacaskop. Turfspruit, the northernmost
property, is contiguous with, and along strike from, Anglo Platinum's Mogalakwena
group of mining operations and properties.
Since 2007, Ivanhoe has focused its exploration and development activities on defining
and advancing the down-dip extension of its original discovery at Platreef, now known
as the Flatreef Deposit, which is amenable to highly-mechanized, underground mining
methods. The Flatreef area lies entirely on the Turfspruit and Macalacaskop properties
that form part of the company's mining right.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal
projects in Southern Africa: the major new, mechanized, underground mines at the
Kamoa-Kakula Mining Complex in the Democratic Republic of Congo, the development
of the Platreef palladium-rhodium-platinum-nickel-copper-gold discovery in South
Africa; and the restart of the historic Kipushi zinc-copper-germanium-silver mine, also
in the Democratic Republic of Congo.
Kamoa-Kakula Mining Complex is one of the highest-grade and fastest growing major
copper mining operations in the world. Copper concentrates were first produced in May
2021 and, through on-going phased expansions, it is positioned to become one of the
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world's largest copper producing operations. Kamoa-Kakula’s 2022 production
guidance is between 310,000 to 340,000 tonnes of copper in concentrate
Ivanhoe Mines is also exploring for new copper discoveries across its circa 2,400km2 of
wholly-owned exploration licences in the Western Foreland, which are located adjacent
to the Kamoa-Kakula Mining Complex in the Democratic Republic of Congo.
Information contact
Investors
Vancouver: Matthew Keevil +1.604.558.1034
London: Tommy Horton +44 7866 913 207
Media
Vancouver: Tanya Todd +1.604.331.9834
Website www.ivanhoemines.com
Forward-looking statements
Certain statements in this news release constitute “forward-looking statements” or “forward-looking
information” within the meaning of applicable securities laws. Such statements involve known and unknown
risks, uncertainties and other factors, which may cause actual results, performance or achievements of the
company, the Platreef Project, 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. These statements reflect the company’s current expectations regarding future events,
performance and results, and speak only as of the date of this news release.
The forward-looking statements and forward-looking information in this news release include without
limitation, (i) statements regarding finalizing a senior debt facility of up to $150 million with mandated lead
arrangers Societe Generale and Nedbank; (ii) statements regarding scheduling and advancement of Phase
1 construction activities; (iii) statements regarding Ivanplats raising additional debt or equity; (iv) statements
regarding future expansions at Platreef to 12 million tonnes of ore per annum and beyond; (v) statements
regarding expansions positioning Platreef among the world’s largest and lowest-cost nickel and PGM mines;
(vi) statements regarding Platreef producing more than 24,000 tonnes of nickel and 1.1 million ounces of
palladium, rhodium, platinum and gold per year; (vii) statements regarding Kamoa-Kakula, through on-going
phased expansions, being positioned to become one of the world's largest copper producing operations.
In addition, all of the results of the Platreef 2022 Feasibility Study constitute forward-looking statements and
forward-looking information. The forward-looking statements include metal price assumptions, cash flow
forecasts, projected capital and operating costs, metal recoveries, mine life and production rates, and the
financial results of the Platreef 2022 Feasibility Study. Readers are cautioned that actual results may vary
from those presented.
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
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results discussed in the forward-looking statements or information, including, but not limited to, the factors
discussed below and under “Risk Factors”, and elsewhere in this release, as well as unexpected changes in
laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts
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 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 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
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 below in the “Risk Factors” section in the company’s 2022 Q2
MD&A and its current annual information form.