Qatar’s sovereign wealth fund evidently wants to increase their exposure to metals. Ivanhoe Mines (TSX: IVN) this morning indicated that the fund, referred as the Qatar Investment Authority, will be taking a substantial stake in the company.
The two parties have come to terms on a financing that will see the Investment Authority take a US$500 million stake in Qatar, which equates to a roughly 4% ownership position. The investment will occur via the issuance of 57.5 million shares of Ivanhoe at a price of C$12.00 per share.
“This landmark investment by the Qatar Investment Authority is a powerful endorsement of Ivanhoe Mines’ vision to be a leading supplier of critical metals that will drive the electrification of the global economy, development of new energy infrastructure, and growth of advanced technologies like large-scale datacentres and AI. [..] Ivanhoe’s journey is only just beginning, as we search the globe for our next discoveries and opportunities to develop new tier-one mines. QIA’s investment will be instrumental in opening up new horizons,” commented Robert Friedland, Co-Chair of Ivanhoe Mines.
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The company has indicated that they intend to use the net proceeds to advance growth opportunities related to critical minerals as well as for general corporate purposes.
As part of the investment, an investor rights agreement is to be put into place, which is to include board representation and information rights should the fund’s ownership stake rise beyond 10%. The duo also indicated that they intend to collaborate on “further strategic partnerships.”
Ivanhoe Mines last traded at $13.19 on the TSX.
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