June 11 (Reuters) - A unit of Chinese state-run conglomerate CITIC Ltd 0267.HK will buy a near 20-percent stake in Canada's Ivanhoe Mines IVN.TO for about C$723 million ($555 million), the companies said on Monday.
Ivanhoe said it will use the proceeds to advance projects in southern Africa, including in the Democratic Republic of Congo.
Copper miners including Invahoe have threatened legal action if their concerns over a new mining code in Africa's top copper producer Democratic Republic of Congo is not met. code was set to be signed into law by Democratic Republic of Congo's prime minister last week. the deal, the Canadian miner will issue 196.6 million shares to CITIC Metal through a private placement at a price of C$3.68 per share. Metal will own 19.9 percent of Ivanhoe Mines' outstanding common shares when the placement is completed, establishing CITIC Metal as Ivanhoe's largest single shareholder.
($1 = 1.3013 Canadian dollars)