Ma'aden announces strategic partnership with Ivanhoe Electric Inc. (IE) to acquire a 9.9% interest in IE and form a joint venture to explore strategic minerals in Saudi Arabia

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Jan 11, 2023, 08:00 ET

RIYADH, Saudi Arabia, Jan. 11, 2023 /PRNewswire/ -- Saudi Arabian Mining Company (Ma'aden) announces that it has entered into an agreement with Ivanhoe Electric (IE) that will see Ma'aden subscribing to new shares in IE resulting in a 9.9% equity interest for USD126 million. As part of the agreement, Ma'aden and IE will also establish a 50:50 joint venture to explore copper, gold, nickel and silver in Saudi Arabia. This is a significant investment for Ma'aden giving it strategic presence in a leading international mining company with its own proprietary technology and increasing its international exposure to critical minerals.

The Heads of Terms was signed today at the Future Minerals Forum in Riyadh, Saudi Arabia, and is expected to be completed by the end of Q1 2023.

Ivanhoe Electric Inc. (IE) is a 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.

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 with approximately 10.2 million new common shares in IE at a price of US$12.38 per share.

The joint venture between Ma'aden and Ivanhoe will explore approximately 48,500 km² of selected licenses areas that demonstrate excellent potential. IE will commit approximately USD66 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.

Through the joint venture, Ma'aden will obtain royalty free access to IE's proprietary Typhoon™ technology, which conducts geophysical surveys using high powered transmitters to detect the presence of sulfide minerals containing copper, nickel, gold and silver. This will help accelerate, de-risk and advance Ma'aden's exploration lands being made available to the joint venture, thereby enabling Ma'aden to realize value from its exploration assets.

Robert Wilt, CEO of Ma'aden, commented: "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 Friedland, Ivanhoe Electric's Executive Chairman commented: "We are proud to partner with Ma'aden and the amazing young motivated women and men of Saudi Arabia on this journey to explore the significant mineral wealth of the Kingdom, especially with the blessings our collaboration may bring to realizing Vision 2030."

Ma'aden is advised in this transaction by M. Klein and Company.

About Ma'aden, The Saudi Arabian Mining Company

Ma'aden is the largest multi-commodity mining and metals company in the Middle East and among the fastest-growing mining companies in the world, with revenues of SAR 26.7 billion ($7.12 billion) in 2021. The company is developing the mining industry into the third pillar of Saudi economy in line with Vision 2030 and aiming to be a role model in responsible and sustainable operations.

Ma'aden operates 17 mines and sites, has 6,000+ direct employees and exports products to over 30 countries. It is embarking on massive growth over the next 18 years across its phosphate, aluminum, gold, copper and precious minerals – to leverage the Kingdom's estimated $1.3 trillion mineral endowment.

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SOURCE Ma'aden