China’s CITIC Metal has agreed to purchase a 19.9% stake in Canadian miner Ivanhoe Mines under a deal worth about C$723 million ($556 million) to "help advance Ivanhoe’s three world-scale mine-development projects in Southern Africa".
"Ivanhoe Mines intends to use the proceeds for the advancement of the company’s world-scale mine development projects in Southern Africa ─ Kamoa-Kakula, Platreef and Kipushi ─ and also for working capital and general corporate purposes," the Canadian company said in a statement.
Kamoa-Kakula is the company’s flagship copper project.
CITIC Metal has also agreed to provide Ivanhoe with a nine-month, interim loan of $100 million in accordance with an agreed term-loan-facility agreement.
CITIC is China's largest conglomerate with total assets of more than $900 billion, according to the statement. The group is focused on financial services, resources and energy, manufacturing, engineering contracting, and real estate.