Ivanhoe Mines (TSX:IVN, OTCQX:IVPAF) has announced that it has secured a US$500M investment from Qatar Investment Authority (QIA), the State of Qatar’s sovereign wealth fund.
As part of the investment, Ivanhoe Mines will issue 57,516,666 common shares to QIA through a private placement at a price of C$12 per share, with gross proceeds to Ivanhoe totalling around US$500M.
Once the investment is final, QIA will own approximately 4% of Ivanhoe Mines, through a mix of issued and outstanding common shares.
Robert Friedland, Executive Co-Chair, and Marna Cloete, President and CEO of Ivanhoe Mines have noted that they indent to use the proceeds to advance growth opportunities related to the exploration, development, and mining of critical minerals, in addition to general corporate purposes.
Robert Friedland commented, “This landmark investment by the Qatar Investment Authority is a powerful endorsement of Ivanhoe Mines’ vision to be a leading supplier of critical metals that will drive the electrification of the global economy, development of new energy infrastructure, and growth of advanced technologies like large-scale datacentres and AI.
“QIA’s forward-looking vision is fully aligned with our own, as well as that of our other long-term strategic investors. We look forward to building this partnership together for years to come.
“Ivanhoe’s journey is only just beginning, as we search the globe for our next discoveries and opportunities to develop new tier-one mines. QIA’s investment will be instrumental in opening up new horizons. Together, we are building an extraordinary partnership of global scale — one that combines world-class resources and shared commitment to sustainable prosperity.”
QIA CEO, Mohammed Saif Al-Sowaidi, also commented, “This strategic investment reflects QIA’s conviction not only in Ivanhoe Mines’ world-class portfolio of tier-one assets, but more importantly, in supporting its team in finding, developing, and sustainably supplying the critical minerals essential to the global energy transition and advanced technology applications.”
Closing of the investment is still subject to approval by the TSX and other customary conditions. The two companies have also noted that they intend to collaborate on more strategic partnerships following this transaction.
