DRC – The DRC government has declared its official support for Ivanhoe Mines and its on-going ownership transfer transaction with China’s Zijin Group regarding the Kamoa project.
This is further supported thanks to Ivanhoe’s negotiations regarding the transfer of 15% of the local company that owns the project to the government as well.
Constructive and cordial negotiations between Ivanhoe Mines and the DRC government are continuing to finalise the terms of a definitive agreement to transfer to the government a further 15% interest in Kamoa Copper SA, the Ivanhoe Mines’ subsidiary that owns the Kamoa project.
The transaction would increase the DRC state’s aggregate ownership in Kamoa Copper SA to a total of 20% and equally dilute the interests of Zijin and Ivanhoe Mines in the project.
The on-going transaction between Kamoa Holding and Zijin Mining Group Co., will see Zijin acquire 49.5% of the share capital of Kamoa Holding, which currently owns 95% of the share capital of Kamoa Copper SA.
Zijin has agreed to purchase a 49.5% share interest in Kamoa Holding for an aggregate consideration of US$412 million. Ivanhoe also agreed to the sale of 1% of its share interest in Kamoa Holding to Crystal River Global Limited for $8.32 million.