Ivanhoe’s Kipushi zinc mine in the DRC officially reopens
The restart marked exactly a century since the mine first went into production.
Ivanhoe Mines (TSX: IVN) has arranged a private placement worth C$500 million ($370m) 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.
Last week, the Africa-focused miner announced it has quadrupled its exploration budget for 2024 to $90 million, most of which will go towards its Western Foreland project in the Democratic Republic of Congo.
The proposed financing will see Ivanhoe 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’s 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.
Ivanhoe 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.
Also in November, the company was granted greenfield prospecting rights in Angola covering about 22,195 km² of area, where it is looking to invest at least $10 million in the initial exploration.
