CITIC Metal to sell up to 2% Ivanhoe Mines stake
CITIC Metal has announced plans to sell part of its shares in Ivanhoe Mines. This development arises amidst increased scrutiny of Chinese investments in Canada’s critical minerals sector.
The firm revealed that its board has approved a potential sale of up to 25,390,428 shares subject to shareholder consent. This quantity represents 2% of Ivanhoe Mines’ outstanding common shares. CITIC Metal currently owns approximately 24.78% of Ivanhoe Mines’ shares. If the sale proceeds and all shares are sold, CITIC Metal’s ownership would decrease to nearly 22.78%.
Sale process
The sale could be executed through public trades, private block trades, or a combination thereof within 12 months following shareholder approval. However, board and shareholder approval does not obligate CITIC Metal to go through with the sale. Any transaction will adhere to Canadian securities laws. The decision to consider selling shares is based on an extensive economic evaluation, and CITIC Metal insists that this move does not alter its long-term strategic investment in Ivanhoe Mines.
A recent investment attempt by China’s Zijin Mining Group in Canada’s Solaris Resources was abandoned due to regulatory hurdles. In contrast, CITIC Metal has actively supported the construction of a large-scale copper mine at the $1.1 billion Kamoa-Kakula Project in the Democratic Republic of Congo, which is jointly owned by Ivanhoe Mines and Zijin Mining Group. The project is one of the world’s largest, highest-grade, and most mechanized copper projects and represents a major step forward in the development of the mining sector in the DRC, combining high-grade resources, significant investment.
