Narrative
Full Description
Project narrative
On August 8, 2018, CITIC Metal Co., Ltd. (CITIC Metal) — a wholly-owned subsidiary of CITIC Limited (CITIC) — signed a $100 million loan agreement with Ivanhoe Mines for three mine development projects in Southern Africa: the Kamoa-Kakula Copper Mine in the DRC, the Platreef Palladium-Nickel-Platinum-Rhodium-Copper-Gold Mine in South Africa, and the Kipushi Zinc-Copper-Germanium-Silver Mine in the DRC – and for working capital and general corporate purposes. The loan carried a 9-month maturity a 6% interest rate. It was collateralized against a share pledge from the executive co-chairman of Ivanhoe Mines. It was pre-payable or it could be repaid with part of the proceeds from a 19.9% private placement. The loan was ultimately repaid ahead of schedule in September 2018.
Staff comments
1. Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper Complex in the DRC, the construction of the tier-one Platreef palladium-nickel-platinum-rhodium-copper-gold project in South Africa; and the restart of production at the ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC. 2. The loan follows a long-term strategic cooperation and investment agreement signed by CITIC and Ivanhoe on June 11, 2018 (see Record ID#86965).