Ivanhoe Mines receives installment from Zijn Mining Group for copper project
Citation： Date：2017-2-16 14:17:34
Ivanhoe Mines has received the fourth installment of US$41.2 million from the Zijin Mining Group for its 49.5% interest in the Kamoa-Kakula copper discovery.
Zijin acquired 49.5% of Ivanhoe Mines' majority stake in Kamoa Holding that holds the interest in the Kamoa-Kakula copper discovery under a strategic co-development agreement. Kamoa-Kakula is being jointly developed by Ivanhoe and Zijin in the Democratic Republic of Congo.
Zijin – through its subsidiary, Gold Mountains International Mining Company – agreed to pay $412 million for a 49.5% interest in Kamoa Holding.
Zijin paid an initial $206 million at closing in December 2015, followed by the payment of the first three of five scheduled $412 million installments in March, July and October of last year.
Following the signing of a partnership agreement with the DRC government in November 2016, Ivanhoe Mines and Zijin Mining now each holds an indirect 39.6% interest in the Kamoa-Kakula project, Crystal River Global holds an indirect 0.8% interest and the DRC government holds a direct 20% interest. Kamoa Holding continues to hold an 80% interest in the Kamoa-Kakula project.
After the receipt of the fourth installment from Zijin, Ivanhoe Mines' consolidated working capital is approximately $355 million.
The fifth and final $41.2 million installment payment is due on 23 May 2017. The installment payments are secured by a pledge of shares of Kamoa Holding with proportionate releases of the security on the pledged shares following receipt of each installment payment.