Zijin Mining (OTC Pink:ZIJMF,HKEX:2899) has announced plans to increase its stake in Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF) to 13.88 percent in a C$194 million private transaction with CITIC Metal Africa and Ivanhoe Mines founder Robert Friedland.
“This rebalancing share purchase and sale agreement once again proves the high level of trust and strategic cooperation between Ivanhoe Mines, CITIC Metal and Zijin Mining,” said Friedland.
Once the transaction closes, CITIC Metal Africa will own about 26.4 percent of Ivanhoe, Zijin will own 13.88 percent and Friedland will own 13.2 percent.
The Chinese company’s plan came after the news of the Kamoa-Kaula project’s new executive management team, of which Zijin and Ivanhoe are joint partners.
The Kamoa-Kakula joint venture project is considered one of the world’s largest undeveloped, high-grade copper discoveries. Based in the Democratic Republic of Congo (DRC), the project combines ultra-high copper grades in thick, shallow and flat-lying deposits.
This move follows Zijin’s previous capital boost in the project back in May 2019 when the company contributed C$67 million to allow Ivanhoe to finance the Kakula project, and CITIC’s major C$612 million investment in Ivanhoe back in April.