PR99437

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

RIYADH, Saudi Arabia, Jan. 11, 2023 /PRNewswire=KYODO JBN/ --

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(TM) 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(TM) 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