Ivanhoe Mines announced a US$500 million investment from Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar.

In accordance with the investment, Ivanhoe Mines will issue 57,516,666 common shares to QIA by way of a private placement at a price of C$12.00 per share, yielding gross proceeds to Ivanhoe of approximately US$500 million.

Upon completion of the investment, QIA will own approximately 4% of Ivanhoe Mines’ issued and outstanding common shares.

Ivanhoe Mines intends to use the proceeds from the investment to advance growth opportunities related to the exploration, development, and mining of critical minerals, as well as for general corporate purposes.

Ivanhoe Mines Executive Co-Chair, Robert Friedland, commented: “This landmark investment by the Qatar Investment Authority is a powerful endorsement of Ivanhoe Mines’ vision to be a leading supplier of critical metals that will drive the electrification of the global economy, development of new energy infrastructure, and growth of advanced technologies like large-scale datacentres and AI.

“QIA’s forward-looking vision is fully aligned with our own, as well as that of our other long-term strategic investors. We look forward to building this partnership together for years to come.

“Ivanhoe’s journey is only just beginning, as we search the globe for our next discoveries and opportunities to develop new tier-one mines. QIA’s investment will be instrumental in opening up new horizons. Together, we are building an extraordinary partnership of global scale, one that combines world-class resources and shared commitment to sustainable prosperity.”

QIA CEO, Mohammed Saif Al-Sowaidi, commented: “This strategic investment reflects QIA’s conviction not only in Ivanhoe Mines’ world-class portfolio of tier-one assets, but more importantly, in supporting its team in finding, developing, and sustainably supplying the critical minerals essential to the global energy transition and advanced technology applications.”

Closing of the investment is subject to the satisfaction of customary conditions for a transaction of this nature, including approval of the TSX.

At the closing of the investment, QIA and Ivanhoe Mines will enter into an investor rights agreement which entitles QIA to certain rights customary for a transaction of this nature, including to board representation and information rights should its ownership rise above 10% and anti-dilution rights. The investor rights agreement also imposes certain customary transfer restrictions on QIA.

Pursuant to the investor rights agreements between the company and CITIC Metal Africa Investments Limited and Zijin Mining Group Co. Ltd., respectively, each of CITIC and Zijin will have the right to acquire common shares of Ivanhoe Mines at the same issue price as QIA to maintain their pro rata equity interest in Ivanhoe Mines.

In connection with the investment, Ivanhoe Mines and QIA are intending to collaborate on further strategic partnerships.