Robert Friedland, the founder and chairman of Africa-focused Ivanhoe Mines (TSX:IVN), said Monday the firm will commit US$24.25 million to a share placement backing the Kamoa and Kipushi projects, in the Democratic Republic of the Congo.
The billionaire mining legend, responsible for the discovery and development of the Oyu Tolgoi copper-gold mine in Mongolia before Rio Tinto’s (ASX, LON:RIO) acquisition, has stated that the Kamoa project is the world’s largest undeveloped copper deposit.
Under the agreed terms, the company will issue no less than 50 million new Class A common shares at C$2.00 per share to raise a total of C$100 million. Ivanhoe may eventually issue up to a total of 54 million common shares, which would raise up to C$108 million, said the company.
The proceeds of the offering will advance the development of the company’s Kamoa copper discovery and the Kipushi zinc-copper-lead-germanium-precious metals project, added the Vancouver-based firm.
The offering of common shares is subject to a number of conditions, including, without limitation, the finalization of definitive subscription documentation and receipt of all regulatory approvals before closing, including the conditional approval of the Toronto Stock Exchange. The offering is expected to close within two weeks.
Until last month the company was known as Ivanplats, but Friedland decided to change to Ivanhoe Mines, which was the name of another mining firm, also founded by Friedland, acquired by Rio Tinto in 2012.
