CITIC Metal has received board approval to potentially sell a portion of its shares in Canadian mining company Ivanhoe Mines.
The transaction could involve up to 25,390,428 shares, representing 2% of the outstanding common shares, subject to further shareholder consent, CITIC Metal said in a statement on the Shanghai Stock Exchange.
Currently, CITIC Metal beneficially owns around 24.78% of Ivanhoe Mines’ outstanding shares.
The proposed sale would be conducted through public trades, private block trades, or a combination thereof, within 12 months of shareholder approval.
The board and shareholder approval does not compel CITIC Metal to proceed with the sale. Any potential transaction would comply with Canadian securities laws.
If CITIC Metal sells all 25,390,428 shares, its remaining stake would be nearly 22.78%.
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By GlobalData
The decision to consider the sale of shares is based on a comprehensive economic evaluation.
CITIC Metal emphasises that this move does not affect its long-term strategic investment in Ivanhoe Mines.
This news comes at a time when Chinese investments in Canada’s critical minerals space are under the lens.
Recently, the planned investment by China-based Zijin Mining Group into Canada’s Solaris Resources was ditched after failure to secure regulatory approval in Canada.
Meanwhile, CITIC Metal invested to support the construction of a six million tonnes per annum copper mine at the $1.1bn Kamoa-Kakula Project in the Democratic Republic of Congo.
Ivanhoe jointly owns the Kamoa-Kakula complex with Zijin.
