Canadian mining company Ivanhoe Mines has received a $500m (C$688.63m) investment from the Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar.
As part of the private placement, the company will issue 57,516,666 common shares to QIA, priced at C$12 per share.
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Ivanhoe Mines intends to use the funds to support its initiatives in the exploration, development and mining of critical minerals, alongside general corporate activities.
The closing of the investment is contingent upon standard conditions for such transactions, including approval from the Toronto Stock Exchange (TSX).
Ivanhoe Mines executive co-chair Robert Friedland said: “QIA’s forward-looking vision is fully aligned with our own, as well as that of our other long-term strategic investors. We look forward to building this partnership together for years to come.
“Ivanhoe’s journey is only just beginning, as we search the globe for our next discoveries and opportunities to develop new tier-one mines. QIA’s investment will be instrumental in opening up new horizons.
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By GlobalData“Together, we are building an extraordinary partnership of global scale – one that combines world-class resources and shared commitment to sustainable prosperity.”
Upon closing the transaction, QIA will hold around 4% of Ivanhoe Mines’ shares. Both parties will sign an investor rights agreement.
The agreement provides QIA with rights to board representation and information should their ownership exceed 10%, in addition to anti-dilution rights.
It also imposes customary restrictions on share transfers by QIA.
Existing investor agreements with CITIC Metal Africa Investments and Zijin Mining Group allow these entities to maintain their equity interests in Ivanhoe Mines by purchasing shares at the same price as QIA.
The collaboration between Ivanhoe Mines and QIA is expected to extend to further strategic partnerships.
QIA CEO Mohammed Saif Al-Sowaidi said: “This strategic investment reflects QIA’s conviction not only in Ivanhoe Mines’ world-class portfolio of tier-one assets, but more importantly, in supporting its team in finding, developing and sustainably supplying the critical minerals essential to the global energy transition and advanced technology applications.”
Earlier this year, Ivanhoe Mines reported progress on restarting operations at the Kakula Mine in the Democratic Republic of Congo, which had been temporarily suspended due to seismic activity.
The company expects to resume mining operations on the western side of the mine later this month, pending dewatering progress.
