On August 16, 2019, CITIC Metal Co., Ltd. (referred to as “CITIC Metal”) and Canadian listed company Ivanhoe Mines (referred to as "Ivanhoe Mines") successfully completed Ivanhoe Mines to CITIC Metal Africa Investments Limited (referred to as “CITIC Metal Africa”), a direct subsidiary of CITIC Metal Co., Ltd. at Capital Mansion in Beijing, issued a second private placement of 153,821,507 shares of common stock (referred to as "River Project Phase II" or "Transaction"). 

 

The transaction price is C$3.98 per share, totaling C$612 million. Upon completion of the financings, CITIC Metal Africa's shareholdings in Ivanhoe Mines will increase from 19.4% to 29.4% , and the number of board seats will increase from 2 to 3. It consolidates its position as the single largest shareholder. Ivanhoe Mines has accepted the director nomination of Ma Manfu, Vice President of CITIC Metal, and the relevant appointment will take effect on August 16, 2019.

 

At the equity delivery ceremony in the afternoon, Sun Yufeng, President of CITIC Metal Group and co-chairman of Ivanhoe Mines, and Mr. Robert Friedland, founder and co-chairman of Ivanhoe Mines, said that this time CITIC Metal's capital increase to Ivanhoe Mines provided sufficient financial support for the company's development, and helped to speed up the annual project of processing 6 million tons of Kamao-Kakula copper mine in 2021. It also provides important support for the development of the Kipushi zinc-copper mine and the Platreef platinum-group polymetallic ore and tapping the potential of new copper mines in the DRC.

 

In addition, Sun Yufeng also said: “Since the initial investment in Ivanhoe Mines made by CITIC Metal last year, we have been delighted to witness the profound progress being made at Ivanhoe’s three world-class projects. All of us are excited by the rapid development at the Kamoa-Kakula copper mine as it moves toward its targeted commercial production date of 2021. The exploration breakthroughs such as the Kamoa North Bonanza Discovery and the Kamoa Far North Discovery are nothing short of spectacular. In the future, CITIC Metal and Ivanhoe Mines will support a prosperous investment environment with the full strength of our combined groups.”

 

Finally, Sun Yufeng and Mr. Robert Friedland also expressed gratitude to the intermediaries with professional services and support in this transaction, including RBC Capital Markets (CITIC Metal’s financial advisor), Baker McKenzie (legal counsel) and Stikeman Elliott LLP (Ivanhoe Mines’ legal counsel).

 

Wu Xianwen (Chairman of CITIC Metal), Ma Manfu (Deputy General Manager of CITIC Metal Group), Lai Haosheng (Chief Financial Officer of CITIC Metal), and Zhou Chao, Vice President of Ivanhoe Mines and Head of Greater China Business, attended the delivery ceremony.