Canadian mining company Ivanhoe Mines has announced a C$500m ($368m) private placement, which will include the issuance of 41.6 million of its class A shares at C$12 apiece.

The company will channel the proceeds towards exploration activities as well as its working capital and general corporate purposes.

This offer, which is pending regulatory approvals such as the Toronto Stock Exchange’s clearance, will close on or about 18 December 2023.

Ivanhoe selected BMO Capital Markets as sole agent for the placement.

The company also plans to grant BMO an option, which can be exercised at the offer price up until 48 hours before the shares are purchased pursuant to the offer.

Ivanhoe further stated that its shareholders including CITIC Metal Africa Investments and Zijin Mining can buy shares at the offer price to maintain their pro rata equity in the business.

Earlier this month, Ivanhoe said that it will increase its group exploration budget to almost $90m for next year.

It plans to focus on the Western Foreland exploration project with copper discoveries in the Democratic Republic of Congo (DRC). The project spans around 2,654km².

Last month, at the Western Foreland project, the company discovered Kitoko, a high-grade copper mineralising system located 1,000m and 1,140m below the surface. It is also bottom-loaded with high copper grade occurring at the base of the mineralised zone.

In the same month, Ivanhoe also gained greenfield prospecting rights in Angola, covering about 22,195km² of area. It is looking to invest at least $10m in the initial exploration.

This greenfield area is covered by Kalahari sand and Karoo volcanics where conventional exploration is less effective.

It plans to leverage the experience developed during the Kamoa-Kakula exploration and Western Foreland exploration in the DRC and conduct airborne magnetics, gravity and electro-magnetic geophysical surveys and a baseline soil geochemistry survey.