DEMOCRATIC REPUBLIC OF CONGO – Under the leadership of executive chairman Robert Friedland, Ivanhoe Mines (formerly Ivanplats) of Vancouver has arranged a non-brokered, private placement that will raise $100 million or more. The company plans to issue at least 50 million common shares at $2.00 per share, and the number of shares may be boosted with another 4 million common shares for a total of $108 million.
Ivanhoe said it plans to use the money to advance two projects in the DRC. One is the Kamoa copper discovery, and the other is the Kipushi zinc-copper-lead-germanium-precious metals project. A certain amount of the money raised will be used for general corporate purposes.
The preliminary economic assessment of the Kamoa project put the pre-production capital cost at $2.0 billion to build a mine and processing plant with a life of 61 years. Cash costs were estimated to be $0.95/lb of copper. The base case used an annual mining rate of 5 million tonnes, but the project is said to have the potential to reach 20 million t/y. Ivanhoe has a 95% interest.
The Kipushi project is a fresh look at a former producer in the Central African Copper Belt. Between 1924 and 1993 the mine produced about 60 million tonnes of ore grading 11% Zn and 7% Cu. Underground drilling is planned. Ivanhoe holds a 68% interest, and the balance is owned by the DRC government.
Additional information about Ivanhoe is available at IvanhoeMines.com.