CITIC Metal Co. to Sell Small Stake in Ivanhoe Mines

SEATTLE (Scrap Monster):  Leading Chinese commodity trader CITIC Metal Co. announced plans to sell a small stake in Canada-based Ivanhoe Mining.

The company’s Board of Directors has approved to sell up to 25,390,428 shares, or 2% of Ivanhoe’s outstanding share capital. The company said it plans to seek shareholders’ approval of the above transaction in a meeting scheduled to be held on June 11. Upon successful completion of sale of maximum shares, CITIC will hold approximately 289.3 million shares of Ivanhoe, representing 22.8% of the total shareholding.

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It must be noted that CITIC Metal Co. is the largest shareholder of Ivanhoe Mining, owning around 314.7 million of its Class A shares, representing approximately one-fourth of its outstanding. The next largest shareholder is China-based Zijin Mining Group with ownership of 13% of shares.

The stake sale comes at a time when the Canadian government is in efforts to impose stricter restrictions on foreign money flow into critical minerals sector, especially on money flows originating from China. Earlier in 2022, the government had forced three Chinese investors to sell their stakes in Canadian mining firms. The security review by the administration had blocked recent efforts by Zijin Mining Groupto invest in Solaris Resources.