The Saudi Arabian Mining Company “Ma’aden” announced today, Wednesday, the signing of agreements to establish 4 companies for exploration and investment in mineral assets, one of which is with the Public Investment Fund.
Maaden stated, in a statement on Saudi Tadawul, that it had signed a joint venture agreement with the Public Investment Fund to establish a company that aims to invest in mining assets internationally to secure strategic minerals.
Under the terms of the agreement, Ma’aden’s ownership in the company will be 51%, while the fund’s ownership will be 49%. The company’s initial paid-up capital will be 187.5 million riyals.
Ma’aden will pay its stake in the company amounting to 95.625 million riyals from its own resources. Ma’aden and the fund also agreed that when the company’s business develops and needs additional financing, Ma’aden and the fund will commit to financing the company with a total amount of about 11.95 billion riyals, and accordingly, the maximum investment of “Maaden” in the company will be about 6.095 billion riyals. unless otherwise agreed by the parties in the future.
The company’s strategy will initially be based on investing in the iron ore, copper, nickel and lithium sectors as a non-operating partner with minority stakes. This will contribute to ensuring the security of domestic mineral supplies and positioning the Kingdom as a major partner in the global supply chain. The company is expected to have a positive financial impact on Ma’aden in the long term. Ma’aden will announce substantial developments in this regard at a later stage.
It is noteworthy that the Fund is considered a related party as it is the largest shareholder in Ma’aden, which owns 67.18% of Ma’aden’s shares.
The Saudi Arabian Mining Company “Ma’aden” announced the signing of a master clauses agreement with Ivanhoe Electric Inc. “Ivanhoe” to acquire 9.9% of the ordinary shares and establish an exploration company in Saudi Arabia.
Ma’aden signed a partnership agreement with Barrick Gold T7 Ltd., a subsidiary of Barrick Gold Company, to establish a company to explore the Umm al-Dummar area.
Ma’aden also signed a partnership agreement with Barrick Gold (Singapore) Ltd., a subsidiary of Barrick Gold Company, to establish a company to explore the south of Jebel Sayid.