Company News

China's CITIC picks up additional stake in Ivanhoe Mines for C$612 mln

April 25 (Reuters) - Ivanhoe Mines Ltd said on Thursday a unit of Chinese state-run conglomerate CITIC Ltd has agreed to invest an additional C$612 million ($453.77 million)in the Canadian miner to speed up production at its projects in Southern Africa.

With this deal, CITIC Metal Co has brought its total investment in Ivanhoe to about C$1.3 billion, the miner said in a statement.

Under the deal terms, Ivanhoe will issue 153.8 million shares to CITIC at C$3.98 per share.

CITIC Metal, currently Ivanhoe’s largest shareholder with a near 20 percent stake, will come to own about 30 percent, after the deal closes.

The deal will also allow Ivanhoe to bear the construction costs for the high-grade Kakula copper mine in the Democratic Republic of Congo.

In June last year, CITIC Metal had said it will buy a near 20 percent stake in Ivanhoe for about C$723 million ($555 million), to advance projects in southern Africa, including in the Democratic Republic of Congo.

Shares of the Canadian miner rose as much as 11.4 percent, to post a five-week high on the Toronto Stock Exchange

$1 = 1.3487 Canadian dollars Reporting by Shradha Singh in Bengaluru; Editing by Shailesh Kuber