Ivanhoe Mines has secured full funding to finance its first two mines, the Kakula and Kipushi projects, in the Democratic Republic of Congo (DRC).
The company has announced that its partner Zijin Mining Group has fully exercised its anti-dilution rights, generating additional proceeds of C$67m ($49m) for Ivanhoe Mines.
The move follows a $454m investment by its largest shareholder CITIC Metal last month.
With the combined proceeds amounting to $503m, Ivanhoe Mines will be able to finance the Kakula and Kipushi mines to commercial production.
Additionally, the investment will help the company in advancing its Platreef Project in South Africa to production.
Zijin Mining is Ivanhoe’s joint-venture partner at the Kamoa-Kakula copper project in the DRC.
Following the exercise of its anti-dilution rights, Zijin will own 9.8% stake in Ivanhoe Mines. Furthermore, Zijin Mining chairman Chen Jinghe has been nominated to join Ivanhoe’s Board of Directors.
Ivanhoe Mines co-chairman Yufeng Sun said: “Chairman Chen is widely respected in the mining industry in China and abroad.
“His strong geological background has endowed him a great vision in finding, investing and operating many great mining deposits around the world, including the successful investment in Kamoa-Kakula during an early stage of discovery and development.”
Ivanhoe Mines is a Canadian mining firm focusing on three assets in Southern Africa. In Congo, it includes the Kamoa-Kakula copper discoveries and the historic Kipushi zinc-copper-germanium-silver mine.
In South Africa, it is developing the Platreef palladium-platinum-nickel-copper-gold discovery.
Additionally, it is also exploring for new copper assets on its wholly owned Western Foreland exploration licences in the DRC, near the Kamoa-Kakula Project.