TORONTO, Dec 04, 2019 (GLOBE NEWSWIRE via COMTEX) --
TORONTO, Dec. 04, 2019 (GLOBE NEWSWIRE) -- Gold Mountains (H.K.) International Mining Company Limited ("Gold Mountains") announces the following transaction.
Gold Mountains has acquired an aggregate of 35,752,011 Class A common shares of Ivanhoe Mines Ltd. ("Ivanhoe Mines") from CITIC Metal Africa Investments Limited ()CITIC") and an aggregate of 12,900,271 Class A common shares of Ivanhoe Mines from Mr. Robert Friedland for a price of C$3.98 per share for an aggregate subscription amount of approximately C$193,636,082 ()Purchase").
The Purchase was effected in accordance with the terms and conditions of a share purchase agreement between Newstar Advantage Ltd., CITIC, Zijin Mining Group Co., Ltd. ("Zijin"), Gold Mountains and Mr. Robert Friedland, dated October 8, 2019.
Prior to completion of the Purchase, Zijin, indirectly through its wholly owned subsidiary Gold Mountains, owned 116,760,354 Class A common shares in the capital of Ivanhoe Mines, representing approximately 9.8% of the issued and outstanding Class A common shares in the capital of Ivanhoe Mines, on a non-diluted basis.
Following completion of the Purchase, Zijin, indirectly through Gold Mountains, now owns 165,412,636 shares in the capital of Ivanhoe Mines, representing approximately 13.88% of the issued and outstanding Class A common shares in the capital of Ivanhoe Mines, 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 director 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 Gold Mountains increasing its position in Ivanhoe Mines.
Ivanhoe Mines Ltd. is located at 654 - 999 Canada Place, Vancouver, British Columbia, V6C 3E1. A copy of Gold Mountains' early warning report will appear on Ivanhoe Mines' profile on SEDAR at www.sedar.com .
For further information concerning the Purchase, please contact Mr. Emil Fan, Company Secretary of Gold Mountains at telephone number 852-2803 2738 or by email addressed to firstname.lastname@example.org.
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