In a press release via the Shanghai Stock Exchange, CITIC said it has received board approval to sell at most 25,390,428 shares, or 2% of Ivanhoe’s outstanding share capital. Shareholder approval for the divestment will be sought in a meeting scheduled for June 11.
Assuming CITIC gains the approval and sells the maximum amount, it will then hold approximately 289.3 million shares, for a 22.78% shareholding in Ivanhoe.
The announcement by CITIC comes at a time when the Canadian government is placing higher surveillance on foreign money flowing into its critical minerals sector, with extra scrutiny on those coming from China.
In 2022, it forced three Chinese investors to sell their stakes in Canadian mining companies. The proposed investment by Zijin in Solaris Resources (TSX: SLS; NYSE: SLSR) was also scrapped recently due to the government’s security review.
Vancouver-headquartered Ivanhoe currently has joint ownership with Zijin in the massive Kamoa-Kakula copper complex in the Democratic Republic of Congo, which began commercial production in 2021. In its final phase, Kamoa-Kakula is expected to become a top 3 copper producer globally, with peak production of 700,000 tonnes annually.
