Barrick is also planning to use funds from the deal to pay down some of its debt, as per its "back to the future" strategy. The company took another step toward that goal on Monday when it sold its New South Wales-based Cowal gold mine.Similarly, Ivanhoe Chairman Robert Friedland states in a release that securing a relationship with "one of the world's most accomplished miners" has "[confirmed] Kamoa's distinction as one of the most significant, undeveloped mineral discoveries of our age." With Zijin's help, the company is now contemplating expanding the Kamoa project beyond the currently planned second phase of production. "The strategic partnership with Ivanhoe announced today, through which we plan to jointly develop Kamoa, will turn our respective strengths into synergies that will create significant value for both Zijin and Ivanhoe shareholders," Chen added. Other benefits The investment in Kamoa has other benefits for Zijin as well. A report from Bloomberg states that DRC government blocked Zijin from entering the country five years ago — it had tried to buy a stake in the Deziwa and Ecaille C copper and cobalt projects for $284 million, but the government wouldn't approve the sale. The DRC is the world's fifth-largest producer of copper and the top producer of cobalt. Ivanhoe's lawyer told Bloomberg that the company has been in regular contact with DRC authorities regarding the deal. However, the country's mines minister, Martin Kabwelulu, told the publication he was unaware of the sale. In any case, the market appears to have responded positively to Ivanhoe's deal. The miner's share price was up 8.62 percent, at $1.26, on Monday, with trading volumes sitting around 4.2 million, over five times the daily average. Barrick also saw high trading volumes, but its share price dipped 3.7 percent, to $14.56. Certainly, both agreements are interesting to note, and investors will be keeping an eye out for more investments from Zijin.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article. Related reading: Pretium Resources Sees C$81-million Investment from China's Largest Gold Producer Cowal Mine Sale a Plus for Both Barrick and Evolution Mining China's Zijin Mining Spending Big on Copper and Gold from Copper Investing News