JOHANNESBURG (miningweekly.com) – TSX-listed Ivanhoe Mines has received the final installment of $41.2-million owing from a subsidiary of Zijin Mining Group as part of a strategic codevelopment agreement under which Zijin acquired 49.5% of Ivanhoe’s majority stake in Kamoa Holding for $412-million.
Kamoa Holding has an indirect 80% interest in the tier-one Kamoa-Kakula copper project, in the Democratic Republic of Congo, that is now being jointly developed by Ivanhoe and Zijin.
Zijin, through its subsidiary Gold Mountains International Mining Company, paid an initial $206-million in December 2015, followed by the payment of four scheduled tranches of $41.2-million each in March, July and October 2016 and February this year.
Following the signing of a partnership agreement with the DRC government in November 2016, Ivanhoe and Zijin Mining now each hold an indirect 39.6% interest in the Kamoa-Kakula project, while Crystal River Global holds an indirect 0.8% interest and the DRC government a direct 20% interest.
After the receipt of the fifth installment from Zijin, Ivanhoe’s consolidated working capital is about $325-million.