Canada’s Ivanhoe Mines secures US$500 million investment from Qatar wealth fund

A crane is seen at a condo development under construction as condo and office towers fill the downtown skyline in Vancouver on March 30, 2018. (Darryl Dyck / THE CANADIAN PRESS)

Canadian mining company Ivanhoe Mines said on Wednesday it will raise US$500 million from Qatar Investment Authority (QIA) in a private placement, giving the sovereign wealth fund a four per cent stake.

QIA will buy 57.5 million Ivanhoe shares at $12 apiece, below the stock’s closing price of $13.19 on Tuesday.

The proceeds will support growth opportunities in critical minerals exploration and development as well as general corporate purposes, the miner said.

Ivanhoe operates three principal projects in southern Africa, including its flagship Kamoa-Kakula copper mine in the Democratic Republic of Congo, one of the world’s largest high-grade copper deposits.

The deal gives QIA customary rights including the option for board representation if its stake exceeds 10 per cent.

Ivanhoe’s major shareholders Zijin Mining and CITIC Metal Africa can maintain their equity through matching investments, the company said.

QIA had also invested in miners such as Glencore in 2018 and TechMet in 2024.

(Reporting by Pranav Mathur in Bengaluru; Editing by Shreya Biswas)