Ivanhoe Mines, a Canadian mining company with operations in Africa, has announced a private placement worth C$500 million ($370 million) to fund its upcoming exploration plans as well as provide working capital. The placement is expected to close by Dec. 18, 2023, subject to exchange approvals.
The company, which is led by billionaire Robert Friedland, has been ramping up its exploration activities in the Democratic Republic of Congo (DRC) and Angola, where it holds some of the world’s largest and highest-grade copper and platinum group metals deposits.
Last week, Ivanhoe Mines announced it has quadrupled its exploration budget for 2024 to $90 million, most of which will go towards its Western Foreland project in the DRC. The project covers an area of 700 square kilometers adjacent to the company’s flagship Kamoa-Kakula copper mine, which is expected to start production in mid-2024.
Ivanhoe Mines recently made an exploration breakthrough on the Western Foreland project with the Kitoko discovery, a high-grade copper mineralizing system that has drawn comparisons to the massive orebody being mined at Kamoa-Kakula.
The company said it plans to drill at least 12 more targets on the Western Foreland project in 2024, as well as conduct airborne geophysical surveys and soil sampling.
In addition to its copper assets in the DRC, Ivanhoe Mines also owns the Platreef project in South Africa, which hosts the world’s largest undeveloped deposit of platinum, palladium, rhodium, and gold. The company is developing a large-scale, mechanized underground mine at Platreef, with an initial production rate of 4.4 million tonnes per year.
In November, Ivanhoe Mines was granted greenfield prospecting rights in Angola covering about 22,195 square kilometers of area, where it is looking to invest at least $10 million in the initial exploration. The company said it is targeting the same type of mineralization that is found at its Platreef project, as well as other commodities such as copper, nickel, cobalt, and gold.
The proposed financing will see Ivanhoe Mines offer approximately 41.66 million Class A common shares for sale at C$12.00 each. BMO Capital Markets, acting as sole agent of the placement, will be granted a 15% overallotment option.
CITIC Metal Africa Investments and Zijin Mining Group, Ivanhoe Mines’ two biggest shareholders, will have the right to purchase common shares to maintain their pro rata equity interests in the company, which are roughly 25.8% and 13.6% respectively.
The private placement comes amid a surge in demand and prices for copper and platinum group metals, driven by the global transition to clean energy and electric vehicles. According to the International Energy Agency, copper demand could increase by up to 50% by 2030, while platinum and palladium demand could rise by 25% and 35% respectively.
Ivanhoe Mines said it is well-positioned to capitalize on this opportunity, as it aims to become one of the world’s largest and greenest producers of copper and platinum group metals. The company said its projects have the potential to generate significant economic and social benefits for the host countries and communities, as well as create thousands of jobs and support local development.
With its ambitious exploration and development plans, Ivanhoe Mines is confident that it can unlock more value from its world-class assets and discover new mineral riches in Africa.
Source: Mining.com
