Toronto, Ontario, Dec 04, 2019 (Newsfile Corp via COMTEX) -- Toronto, Ontario--(Newsfile Corp. - December 4, 2019) - CITIC Metal Africa Investments Limited ("CITIC") announces the following transaction.
CITIC has sold an aggregate of 35,752,011 Class A common shares (the "Shares") of Ivanhoe Mines Ltd. ("Ivanhoe Mines") (representing approximately 3% of the issued and outstanding Class A common shares of Ivanhoe Mines ("Common Shares") on a non-diluted basis) at a price of C$3.98 per share for an aggregate subscription amount of approximately C$142,293,004 (the "Sale"). The Sale was effected in accordance with the terms and conditions of a share purchase agreement dated October 8, 2019 between Ivanhoe, CITIC, Zijin Mining Group Co., Ltd. ("Zijin"), Gold Mountains (H.K.) International Mining Company Limited and Mr. Robert Friedland.
Following completion of such transaction, CITIC and its affiliates own or exercise direction or control over 314,671,533 Shares (representing approximately 26.4% of the issued and outstanding Common Shares on a non-diluted basis).
Mr. Friedland, Zijin and CITIC have entered into a tripartite lock-up agreement dated December 3, 2019 that prevents (i) Mr. Friedland from increasing his ownership stake in Ivanhoe Mines to more than 19.9% until January 8, 2023 and (ii) Mr. Friedland, Zijin or CITIC from disposing of any Common Shares until June 11, 2023 except pursuant to the Ivanhoe Mines' board of directors approved take-overs or arrangements, non-pre-arranged transfers over the Toronto Stock Exchange, and other limited exceptions.
This press release is being issued pursuant to Canadian early warning requirements because the transactions discussed above have resulted in CITIC decreasing its position in Ivanhoe Mines.
Ivanhoe Mines Ltd. is located at 654 - 999 Canada Place, Vancouver, British Columbia, V6C 3E1. CITIC's address is Room 2003, Capital Mansion, 6 Xinyuannanlu, Chaoyang District, Beijing 100004 China. A copy of CITIC's early warning report will appear on Ivanhoe Mines' profile on SEDAR at www.sedar.com and may be obtained by calling Mr. Richard LUO at + 86 10 59662011.
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