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Ivanhoe Mines Ltd T.IVN

Alternate Symbol(s):  IVPAF

Ivanhoe Mines Ltd. is a Canada-based mining, development, and exploration company. The Company is focused on the mining, development and exploration of minerals and precious metals from its property interests located primarily in Africa. Its projects include The Kamoa-Kakula Copper Complex, The Kipushi Project, The Platreef Project., and The Western Foreland Exploration Project. The Kamoa-Kakula Copper Complex project stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, approximately 25 kilometers (km) west of the town of Kolwezi and about 270 km west of the provincial capital of Lubumbashi. The Kipushi mine is adjacent to the town of Kipushi in the Democratic Republic of the Congo (DRC) approximately 30 km southwest of the provincial capital of Lubumbashi. The 21 licenses in the Western Foreland cover a combined area of 1,808 square kilometers to the north, south and west of the Kamoa-Kakula Copper Complex.


TSX:IVN - Post by User

Bullboard Posts
Post by st_estebanon Aug 03, 2015 10:20pm
239 Views
Post# 23985680

Zijin is moving ahead raising capital to purchase Kamoa

Zijin is moving ahead raising capital to purchase Kamoa
https://www.hkexnews.hk/listedco/listconews/sehk/2015/0803/LTN201508031652.pdf

This document has a lot of interesting details about Zijin...

In relation to Kamoa:
Page 7: "Acquisition of 49.5% equity interest and 49.5% shareholders’ loan in the purchasing project of the
Kamoa copper mine in the DR Congo"

Page 8: "If the proceeds raised in the Non-public Issuance are less than the amount required for projects investment, the Company will seek the required portion through other means of financing. The Company will invest in the projects with other means of financing according to the actual development progress of the projects before the proceeds raised in the Non-public Issuance are in place, and the proceeds raised in the Non-public Issuance will be used to substitute the Company’s funding after they are received into account. Within the scope of the aforementioned projects to be
invested by the proceeds raised (the “Projects to be Invested by the Proceeds Raised”), the Board may make appropriate adjustments to their investment amounts corresponding to the actual needs of the projects and in compliance with procedures as stipulated by relevant rules and regulations."

Page 33-34:
"All the overseas mines proposed to be acquired or constructed by the Company this time are large
in scale. The Kamoa copper mine in the DR Congo is even a newly-discovered world-class, large-scale stratiform copper deposit. The volume of copper resources reserve is 22.471 million tonnes (the largest copper mine in the world, the Chuquicamata copper mine in Chile has 69.35 million tonnes of resources reserve while the second largest copper mine in the world, El Teniente copper mine in Chile has 67.76 million tonnes of resources reserve). It is the largest overseas copper mine that Chinese corporations have ever acquired so far. The Porgera gold mine in Papua New Guinea has volume of gold resource reserves of 330.13 tonnes, ranking No.36 in the world’s operational gold mines and No.65 in the world’s 580 gold mines which have statistical record (source of data: Global Gold Mine and Deposit Rankings 2013 issued by Natural Resource Holdings). The Kolwezi copper mine in the DR Congo has copper resources reserve of 1.54 million tonnes. It is classified as a large-scale copper mine.

In addition, the average grade of the Kamoa copper mine in the DR Congo is 2.57%. The average
grade of the Kolwezi copper mine is nearly 4%, while that of the copper mines in China is only 0.87%. "

Page 38: "In 2014, global production volume of copper was 21.55 million tonnes, and consumption volume was 21.25 million tonnes. The demand and supply basically remained balanced. The production and consumption volume in China were 6.82 million tonnes and 8.72 million tonnes respectively. China has become the largest copper consumer in the world. Since there is a huge gap between the supply and demand of copper resources in China, it has to rely on import. In 2014, China imported 3.58 million tonnes of copper concentrates, representing 41.06% of its total consumption. It is expected that import volume will continue to grow."

Page 41 - 47 : Details of the agreement between Ivanhoe and Zijin in relation to the sale of Kamoa

Page 44: "The price of the transaction is determined based on the due diligence and financial analysis made on the target company by the Company and the external professional teams appointed by the Company, with reference to the Kamoa copper mine’s volume of resources, valuation of the project, comparable figures in the market, and combining the Company’s evaluation on the prospect of the target assets, impacts on the Company’s future operation and strategy, etc., and is on normal commercial terms and arrived at after an arm’s length negotiation. The consideration of the transaction is US$412 million, approximately equivalent to RMB2.51732 billion based on the exchange rate of US$1 to RMB6.11."

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