Ma’aden buys 9.9% stake in Ivanhoe Electric and forms JV to undertake exploration programmes

Ma'aden, a Saudi state-owned mining company headquartered in Riyadh, is acquiring a 9.9 per cent stake in Vancouver's Ivanhoe Electric for $126.5 million. The news came on Tuesday, May 16, after Ma'aden announced signing an agreement with the American company. As per the deal, Ma'den is purchasing nearly 10.2 million common shares in Ivanhoe Electric (IE).

Ma'aden also announced that it formed a 50/50 joint venture with IE to shoulder one of the most extensive exploration programmes. The JV will fund $66 million for exploration activities and buying three new-generation Typhoon machines.

The agreement makes Ma'aden eligible to access IE's Typhoon geophysical survey technology to explore Saudi Arabia's lands that hold $1.3 trillion of untapped minerals. Ma'aden and IE will explore at least 48,500 square kilometres of land together.

"We have only scratched the surface of the potential in the kingdom, and we need to explore faster, smarter and cover more ground to meet our long-term growth objectives," said Ma'aden chief executive Robert Wilt.

"IE's Typhoon technology will enable us to accelerate our exploration efforts by six times, and de-risk and advance the development of a significant exploration hub in the kingdom. This is going to help put us on track to meet our 10 times growth targets," added Wilt.

IE's executive chairman Robert Friedland said, "We are excited to finalise our transaction terms with Ma'aden and begin the important work of minerals exploration in the kingdom."

He continued saying, "With our Typhoon technology, our computational geosciences' machine-based learning software, and the combined talents of our highly experienced team … we have all the tools necessary to conduct a transformational exploration programme for electric and precious metals in the kingdom."

However, the JV formation process and 9.9 per cent share acquisition will come into effect only after fulfilling a few more conditions, said Ma'aden and IE.