Ivanhoe Mines Announces C$500 Million Private Placement
Ivanhoe Mines Ltd. announced yesterday December 12 that it has engaged BMO Capital Markets as sole agent in connection with a proposed offering of 41,667,000 Class A common shares (the “Common Shares”), on a private placement basis (the “Offering”) at a price of C$12.00 per Common Share (the “Offering Price”) for aggregate gross proceeds of C$500 million (approximately US$370 million).
The Company expects to grant BMO Capital Markets an option, exercisable at the Offering Price up until 48 hours prior to the closing of the Offering, to place up to an additional 15% of the number of Common Shares purchased pursuant to the Offering.
The Offering is expected to close on or about December 18, 2023 and is subject to Ivanhoe Mines receiving all necessary regulatory approvals, including approval of the Toronto Stock Exchange.
The net proceeds of the Offering will be used to fund exploration, working capital, and for general corporate purposes.
The Offering will be conducted in reliance upon certain prospectus and private placement exemptions. The securities issuable to Canadian purchasers under the private placement will be subject to a hold period expiring four months and one day after the closing date.
The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Pursuant to the investor rights agreements between the Company and CITIC Metal Africa Investments Limited (“CITIC”) and Zijin Mining Group Co. Ltd. (“Zijin”), respectively, each of CITIC and Zijin will have the right to acquire Common shares at the Offering Price to maintain their pro rata equity interest in the Company.
Any Common Shares issued to CITIC or Zijin on exercise of their respective anti-dilution rights under their investor rights agreements will be in addition to those issued as part of the Offering.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper Complex in the DRC, the construction of the tier-one Platreef palladium-nickel- platinum-rhodium-copper-gold project in South Africa; and the restart of the historic ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC.
Ivanhoe Mines also is exploring for new copper discoveries across its circa 2,400km2 of 80-100% owned exploration licenses, as well as on the 247km2 of newly acquired joint venture licenses, in the Western Foreland located adjacent to the Kamoa-Kakula Copper Complex in the DRC.
