Canadian mining company Ivanhoe will sell a minority stake to CITIC Metal Co., reports Bloomberg, pushing the Chinese state-backed subsidiary to the largest shareholder ahead of company founder Robert Friedland.
The deal will see CITIC buy 196.6 million shares at around C$3.68/share. The C$723 million raised will go towards investing in another Canadian company with mineral mines in southern Africa, Ivanhoe said.
“We are confident that CITIC Metal shares our vision and has the experience and financial resources to help us advance our three projects to production, creating value for Ivanhoe’s stakeholders in the Democratic Republic of Congo and South Africa,” said Friedland.
CITIC president Sun Yufeng will become co-chair and will be able to nominate to directors to the company’s board.