Saudi Arabian Mining Co. — Capital/Financing Update 2023

Jan 11, 2023

Saudi Arabian Mining Company (Ma'aden) Announces the signing of a Heads of Terms agreement with Ivanhoe Electric Inc. (IE) to acquire 9.9% shares of common stock & formation of exploration joint venture in the kingdom of Saudi Arabia

1211 · 11/01/2023 08:51:19 · Announcement #71653 · View on Saudi Exchange

Saudi Arabian Mining Company (Ma'aden) Announces the signing of a Heads of Terms agreement with Ivanhoe Electric Inc. (IE) to acquire 9.9% shares of common stock & formation of exploration joint venture in the kingdom of Saudi Arabia

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Explanation

Announcement Detail

Saudi Arabian Mining Company (Ma’aden) announces that it has signed on Tuesday, 10/01/2023 corresponding (17/06/1444) a Heads of Terms agreement (HoT) with Ivanhoe Electric Inc. (IE) to (i) acquire 10,208,162 shares of common stock representing a 9.9% equity interest in IE at the closing of the transaction which is expected to be by end Q1 2023 at a price per share of SAR 46.43 (USD 12.38) with a total amount around SAR 474 million (USD 126.4 million) and Ma’aden will finance the transaction from its own resources, and (ii) form a Saudi joint venture company to be 50:50 owned by Ma'aden and IE to explore and develop mining projects in the Kingdom of Saudi Arabia. Under the HoT, the proceeds paid by Ma’aden for the 9.9% equity interest in IE will be (i) invested in the working capital and general corporate use of IE, (ii) used to purchase Typhoon™ units and (iii) contributed towards the exploration of prospective lands to be provided by Ma'aden for metallic minerals within the Kingdom.

The joint venture will provide Ma’aden with access to the proprietary “Typhoon” technology which conducts geophysical surveys using high powered transmitters to detect the presence of sulphide minerals containing copper, nickel, gold and silver. This is expected to help successfully accelerate and de-risk the exploration process for Ma'aden by enabling resource discovery through using one of the most accurate and powerful geophysical survey technologies in the market and will lower exploration costs.

Ma'aden and IE are in the process of negotiating the definitive documentation in relation to the transaction and it is expected to have a positive financial impact on Ma’aden in the long term. Further announcements will be made as appropriate.

IE is a US-based technology company, listed on the Toronto Stock Exchange and New York Stock Exchange and applies a suite of technological solutions to dramatically increase the quality and efficiency of metals-focused exploration campaigns, which aligns with Ma’aden’s strategy to gain leverage of commodities with long-term growth potential.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.