Saudi Arabian Mining Co. (Ma’aden) has completed an agreement with Ivanhoe Electric Inc. (IE) to buy 9.9% shares in the company for US$126.5 million and form a 50/50 joint venture.
Ma’aden is one of the largest multi-commodity mining and metals companies in the Middle East.
Both companies to undertake one of the largest exploration programs. The project will explore an area larger than Denmark, covering highly prospective license areas with the potential for new copper, nickel, gold, silver, and other precious mineral discoveries.
The deal will provide Ma’aden with all tools to accelerate the exploration of Saudi Arabia’s lands.
Saudi Arabia is estimated to hold US$1.3 trillion of untapped minerals.
Robert Wilt, CEO of Ma’aden, said: “This is going to help put us on track to meet our 10x growth targets and fast track development of the Kingdom’s mineral riches.”
As part of the agreement, Ma’aden will acquire approximately 10.2 million common shares in IE, representing 9.9 percent of IE, with a top-up option to maintain its 9.9% ownership.
“The JV will invest $66 million of the $126.5 million to fund exploration activities and the purchase of three new-generation Typhoon machines,” the company said.
Ma’aden has obtained the right to appoint a nominee to the IE board of directors.
The formation of the JV and the acquisition of shares in IE will only be effective after meeting certain requirements.
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