Zijin Mining to Acquire 9.9% Ivanhoe Stake for $83 Million

Zijin Mining Group Co. will pay C$105 million ($83 million) to acquire 9.9 percent of Ivanhoe Mines Ltd., helping billionaire Robert Friedland’s explorer push forward with projects in Africa.

Zijin will buy about 76.8 million new shares at C$1.36 each in a private placement, the companies said Monday in a joint statement. Ivanhoe gained 12 percent to C$1.09 at the close in Toronto.

Ivanhoe will use the funds to develop the Kamoa and Kipushi copper prospects in the Democratic Republic of Congo and the Platreef project in South Africa, the lowest-cost platinum mine on the continent, the companies said. The Chinese company, which is targeting acquisitions in Africa, may work with Vancouver-based Ivanhoe on the $1.4 billion Kamoa mine.

The two agreed “to explore additional opportunities,” Friedland said in the statement. “In particular, Ivanhoe and Zijin are in detailed, friendly discussions about the strategic co-development of our Kamoa copper discovery.”

The share placement is due to close April 20.

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