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.