HomeBase MetalsIvanhoe Mines receives second $41.2m installment from Zijin

Ivanhoe Mines receives second $41.2m installment from Zijin

Ivanhoe Mines received the second installment payment from Zijin Mining Group as part of Zijin’s $412 million investment in the Kamoa copper project in the Democratic Republic of Congo (DRC).

The second installment received by Ivanhoe Mines is owed from a subsidiary of Zijin Mining Group as part of a strategic co-development agreement under which Zijin acquired 49.5% of Ivanhoe’s majority stake in the Kamoa copper discovery being jointly developed by Ivanhoe and Zijin in the DRC.

Through Zijin’s subsidiary, Gold Mountains International Mining Company has agreed to pay $412 million for a 49.5% interest in Ivanhoe subsidiary Kamoa Holding that presently owns 95% of the Kamoa project.

In December 2015, Zijin paid an initial $206 million followed by the payment of the first of five scheduled $41.2 million installments in March 2015.

The receipt of the second installment from Zijin has increased Ivanhoe’s consolidated working capital to approximately $455 million which represents approximately C$0.76 per issued and outstanding common share of Ivanhoe Mines.

The remaining $123.6 million is required to be paid in three further equal installments, every 3.5 months, with the next installment due on 24 October 2016.

Kamoa Holding secures the installments payments by a pledge of shares with proportionate release of the security on the pledged shares following receipts of each installment payment.