Maaden signs agreement to acquire 9.9% stake in US-based Ivanhoe for SAR 474 mln

Maaden headquarters

Saudi Arabian Mining Co. (Maaden) signed on Jan. 10 a heads of terms agreement with Ivanhoe Electric Inc. (IE) to acquire 10.21 million shares representing 9.9% of Ivanhoe's common shares.

In a statement to Tadawul, Maaden said the acquisition will take place for a total amount of SAR 474 million ($126.4 million), or SAR 46.43 ($12.38) per share, upon deal completion.

The deal is expected to be finalized by the end of Q1 2023, and it will be financed from Maaden’s own resources.

The statement pointed out that a new company will be established in Saudi Arabia, owned by Maaden and Ivanhoe (50/50) for the purpose of exploration and development of mining projects in the Kingdom.

Based on the agreement, the proceeds from the acquisition paid by Maaden will be utilized to invest in Ivanhoe’s operating capital and general use. It will also be used to purchase unit of data acquisition system Typhoon, and to invest in mineral exploration in the Kingdom, in the lands that will be made available by Maaden for this purpose.

The joint venture between Maaden and Ivanhoe will provide the possibility of using the Typhoon technology that performs geophysical surveys, the statement noted.

This is done by using high-energy transmitters to detect the possible presence of sulfur minerals containing copper, nickel, gold, and silver.

The joint venture is expected to accelerate exploration operations and reduce its risks and costs for Maaden, through the utilization of the most accurate and powerful geophysical survey technologies across the world.

Maaden said that it is in the final negotiations with Ivanhoe on the deal, expecting to have a positive financial impact in the long term.

Any material developments will be announced later, it asserted.

US-based Ivanhoe is a technology firm listed on the Toronto Stock Exchange and the New York Stock Exchange (NYSE).

Ivanhoe utilizes a bundle of technology solutions to boost the quality and efficiency of its mineral-focused exploration operations, which are in line with Maaden’s strategy to acquire a broader range of commodities for the possibility of long-term growth.

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