- Ivanhoe Electric Inc. (IE) has signed a US$126.4 million binding agreement for a 50/50 joint venture with Saudi Arabian mining company, Ma’aden
- Ivanhoe Electric will issue approximately 10.2 million new common shares to Ma’aden
- The companies will establish the joint venture in Saudi Arabia with a 48,500-square-kilometre land package with an initial term of five years
- US$60 million of the proceeds will fund Ivanhoe Electric’s US projects and operations, and another 66 million will fund the new joint venture
- US$13 million which will be used to purchase three of the company’s Typhoon machines that will come royalty-free
- Ivanhoe Electric Inc. (IE) is up 4.67 per cent, trading at $19.27 per share as of 11:19 a.m. EST
Ivanhoe Electric Inc. (IE) has signed a US$126.4 million binding agreement for a 50/50 joint venture with Saudi Arabian mining company, Ma’aden.
Ma’aden explores minerals such as gold, silver, copper, zinc, and phosphate. It has a market capitalization of approximately US$48 billion.
As a part of the agreement, Ivanhoe Electric will issue approximately 10.2 million new common shares to Ma’aden. Ma’aden will have anti-dilution rights to maintain its new 9.90 per cent ownership in Ivanhoe Electric.
Ma’aden also has the right to appoint one independent director to Ivanhoe Electric’s board of directors.
The companies will establish the joint venture in Saudi Arabia with a 48,500-square-kilometre land package with an initial term of five years. It may be extended up to 10 years.
According to Ivanhoe Electric, it will use US$60 million of the proceeds to advance its U.S. mineral projects and for working capital and general corporate purposes.
Ivanhoe Electric will also contribute approximately US$66 million to the joint venture. US$13 million of this portion will be used to purchase three of the company’s Typhoon machines, which will come royalty-free.
Robert Friedland, Executive Chairman of Ivanhoe Electric, commented
“This joint venture in Saudi Arabia will set us down a new path with Typhoon… the first wide-scale use and deployment of our disruptive geophysical surveying tool to a third party for the mutual benefit of both companies and their stakeholders.”
Ivanhoe Electric Inc. (IE) is up 4.67 per cent, trading at $19.27 per share as of 11:19 a.m. EST.