Canadian Mining Journal

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COPPER: Ivanhoe Mines Receives Third of Five Scheduled US$41.2 Million Installment Payments From Zijin Mining Group as Part of Zijin’s US$412 Million Investment in the Kamoa-Kakula Copper Project in DRC



VANCOUVER: Ivanhoe Mines announced today that it has received the third installment of US$41.2 million owing from a subsidiary of Zijin Mining Group Co., Ltd. as part of a strategic co-development agreement under which Zijin acquired 49.5% of Ivanhoe’s majority stake in the Kamoa-Kakula copper discovery now being jointly developed by Ivanhoe and Zijin in the Democratic Republic of Congo.

Zijin – through its subsidiary, Gold Mountains (H.K.) International Mining Company Limited – agreed to pay US$412 million for a 49.5% interest in Ivanhoe subsidiary Kamoa Holding Limited that presently owns 95% of the Kamoa-Kakula Project. Zijin paid an initial US$206 million at closing in December last year, followed by the payment of the first two of five scheduled US$41.2 million installments in March and July of this year.

The receipt of the third installment from Zijin has increased Ivanhoe’s consolidated working capital to approximately US$395 million (C$529 million). This represents approximately C$0.68 per issued and outstanding common share of Ivanhoe Mines.

The remaining US$82.4 million is required to be paid in two further equal installments, every 3.5 months, with the next installment due on February 8, 2017. The installment payments are secured by a pledge of shares of Kamoa Holding Limited with proportionate releases of the security on the pledged shares following receipt of each installment payment.