Chinese mining firm Zijin has announced intent to increase its stake in Canada-based company Ivanhoe Mines to 13.88%.

The private share purchase and sale transaction will be reached with China’s CITIC Metal Africa and Canadian mining billionaire Robert Friedland.

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Upon completion of the deal, CITIC Metal Africa will own nearly 26.4% of Ivanhoe’s issued and outstanding shares while Robert Friedland will hold 13.2%.

Robert Friedland said: “This rebalancing share purchase and sale agreement once again proves the high level of trust and strategic cooperation between Ivanhoe Mines, CITIC Metal and Zijin Mining.”

The transaction is dependent on recordals and registrations with Chinese Government regulatory agencies expected in two months.

After closing the transaction, Zijin and Ivanhoe Mines are expected to sign an investor rights agreement. Zijin’s chairman Chen Jinghe will be appointed as one of the directors at Ivanhoe.

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Zijin will also enter lock-up arrangements. Meanwhile, the transaction will not affect the existing standstill agreements between CITIC Metal and Friedland.

The move follows the strengthening of the executive management team of the Kamoa-Kakula Copper Joint Venture (JV).

The JV is between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the DRC Government (20%).

The Kakula mine project is being developed through co-funding from Ivanhoe Mines and Zijin Mining. The project at Kamoa-Kakula involves at least three mines with the first planned for the third quarter of 2021.