Ma’aden, the Saudi Arabian Mining Company, announces that it has entered into an agreement with Ivanhoe Electric (IE) to acquire a 9.9% equity interest in a $126 million deal.

As part of the agreement, Ma’aden and IE will also establish a joint venture to explore strategic minerals such as copper, gold, nickel, and silver in Saudi Arabia. The deal is expected to be completed by the end of Q1 2023.

Under the transaction terms, Ma’aden will obtain the right to appoint one independent director to the Ivanhoe Electric Board of Directors and will be issued approximately 10.2 million new ordinary shares in IE at a price of $12.38 per share.

The joint venture between Ma’aden and Ivanhoe will explore approximately 48,500 km2 of selected license areas that demonstrate excellent potential. IE will commit approximately $66 million from funds raised through the share subscription to the joint venture to fund the purchase of three new-generation Typhoon™ machines and the exploration of prospective lands to be provided by Ma’aden for metallic minerals within the Kingdom.

“Ma’aden’s strategic investment in Ivanhoe Electric is a critically important moment in our journey to become a leading supplier of strategic minerals, which will fuel global economic growth over the coming decade. Through Ma’aden, Saudi Arabia is making an invaluable contribution to fast-developing new industries across the world characterized by technological advancement,” Robert Wilt, CEO of Ma’aden, said.

IE is an NYSE-listed mineral exploration and development company in the United States that combines advanced mineral exploration technologies, renewable energy storage solutions, and electric metals projects.