Doha: Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, plans to invest approximately USD 500 million in Ivanhoe Mines' capital.
According to Qatar News Agency, Ivanhoe Mines will issue 57,516,666 common shares to QIA via a private placement, priced at 12.00 Canadian Dollar per share, resulting in gross proceeds of around USD 500 million for Ivanhoe.
Once the investment is finalized, QIA will hold around 4 percent of Ivanhoe Mines' issued and outstanding common shares. Ivanhoe Mines has stated that the funds will be used to pursue growth opportunities related to the exploration, development, and mining of critical minerals, alongside general corporate purposes.
QIA CEO, Mohammed Saif Al Sowaidi, expressed that this strategic investment underscores QIA's confidence in Ivanhoe Mines' asset portfolio and commitment to sustainably sourcing critical minerals vital for the global energy shift and advanced technology applications. Ivanhoe Mines Executive Co-Chair, Robert Friedland, noted that QIA's investment is a significant endorsement of Ivanhoe Mines' vision to become a leading supplier of critical metals essential for global electrification and technological advancements.
The completion of the investment is contingent upon meeting customary conditions, including the Toronto Stock Exchange's approval. Post-investment, QIA and Ivanhoe Mines will enter into an investor rights agreement, granting QIA certain rights, such as board representation and information rights, if ownership exceeds 10 percent, alongside anti-dilution rights.
Existing agreements with CITIC Metal Africa Investments Limited and Zijin Mining Group Co. Ltd. allow them to acquire Ivanhoe Mines' shares at the same price as QIA to maintain their equity stake. Ivanhoe Mines and QIA also plan to explore further strategic partnerships in connection with this investment.