M&As this week: CITIC Metal, KEFI Minerals, Tharisa

15 June 2018 (Last Updated July 27th, 2018 07:32)

CITIC Metal has reached an agreement to acquire a 19.9% stake in Ivanhoe Mines for a sum of $556.87m.

CITIC Metal has reached an agreement to acquire a 19.9% stake in Ivanhoe Mines for a sum of $556.87m.

CITIC will purchase 196.6 million common shares in Ivanhoe, priced at C$3.68 a share, via a private placement as part of the deal.

Ivanhoe intends to use the proceeds to advance the development of three mines in Southern Africa, namely Kamoa-Kakula, Platreef and Kipushi.

CITIC Metal has also agreed to provide a $100m interim loan facility to Ivanhoe under the agreement, in addition to arranging project financing for the first phase of development of the Kamoa-Kakula project.

China-based CITIC Metal is a subsidiary of China’s conglomerate CITIC Group, while Ivanhoe Mines is a mining firm based in Canada.

“Rio2 Limited (Rio2) and Atacama Pacific Gold (Atacama Pacific) have agreed to merge as part of a court-approved plan of arrangement.”

A group of Ethiopian investors have signed an agreement to acquire 30% interest in KEFI Minerals (Ethiopia) (KME).

KME holds a 77% interest in Tulu Kapi Gold Mines (TKGM), while the Ethiopian Government holds the remaining 23% stake.

The syndicate proposes to invest $30m in project funding for the Tulu Kapi mine as part of the acquisition.

Tharisa has acquired a 26.8% stake in Karo Mining Holdings (Karo Holdings) for $4.5m.

The company has gained access to a tier-one platinum group metals (PGM) and base metal resource located on the Great Dyke in Zimbabwe via the acquisition.

Karo Holdings is currently establishing an integrated mining and refining complex in the country as part of an investment agreement signed with the Government of Zimbabwe.

Karo Holdings’ indirect subsidiary Karo Platinum holds a 50% interest in the first of the projects planned for development under the investment agreement, while the Government of Zimbabwe holds the remaining 50% through an investment company.

Tharisa has agreed to provide an $8m debt facility to Karo Platinum to carry out initial geological exploration and sampling works, which will determine the project’s mineral resources.

Tharisa will also manage the exploration and oversee the subsequent bankable feasibility study.

Rio2 Limited (Rio2) and Atacama Pacific Gold (Atacama Pacific) have agreed to merge as part of a court-approved plan of arrangement.

The combined company is set to operate under Rio2’s existing executive team and will be named Rio2 Limited.

Atacama Pacific shareholders are expected to receive 0.6601 shares in the combined company for each share currently held in Atacama Pacific, while Rio2 shareholders will receive 0.6667 shares of the combined company for each common share currently held in Rio2.