CITIC Metal has received the internal approvals required for its subsidiary CITIC Metal Africa Investments (CITIC Metal Africa) to complete its second investment in Ivanhoe Mines for an additional C$612m ($464m).

Ivanhoe Mines will issue 15.3 million common shares to CITIC Metal Africa, with each share priced at C$3.98 ($3.01). This is a premium of 29% over Ivanhoe’s 24 April 2019 closing price, under the terms of the agreement signed in April.

This investment is CITIC Metal’s second major financing in less than a year. With this move, CITIC’s total investment in Ivanhoe reaches approximately $1bn. It is expected to close no later than 7 September.

In May, Zijin Mining Group, Ivanhoe’s joint venture partner in the project, exercised its anti-dilution rights which is expected to generate C$67m ($51m) for the latter. The amount is expected to be secured at the same time as the CITIC Metal funds.

After completion of the financing, Citic will own 29.4% of Ivanhoe’s issued and outstanding common shares while Zijin Mining will own around 9.8%.

The total funds of more than C$679m ($514m) from the CITIC Metal and Zijin Mining investments will enable Ivanhoe to completely finance its share of the capital costs required to bring the Kakula Mine into commercial production.

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The first copper concentrate production from the Kakula Mine is expected in the third quarter of 2021.

Ivanhoe Mines is a Canadian mining firm focusing on three assets in Southern Africa. In The Democratic Republic of the Congo (DRC), it includes the Kamoa-Kakula copper discoveries and the historic Kipushi zinc-copper-germanium-silver mine.

Ivanhoe also partnered with La Générale des Carrières et des Mines to upgrade the Kipushi zinc-copper-germanium-silver mine in the DRC.

Additionally, it is developing the Platreef palladium-platinum-nickel-copper-gold discovery in South Africa.