Ivanhoe Mines Ltd. (TSX:IVN, OTCQX:IVPAF) announced on Monday that it has been granted 22,195 square kilometres of greenfield prospecting rights, equivalent to half the size of Switzerland, for exploration in the Moxico and Cuando Cubango Provinces of Angola for an initial period of five years.
The Canadian mining company, which was founded by billionaire mining investor Robert Friedland, said exploration activities are expected to commence following team mobilization in early 2024.
"Ivanhoe Mines has an exceptional track record of discovering tier-one deposits in new frontiers… and we are now commencing exploration activities in the underexplored regions of Angola that we believe could host an extension of the Central African Copperbelt," Friedland said in a statement.
Ivanhoe Mines noted that it can extend the permit to a maximum of seven years, but it will have to relinquish 50% of the prospecting rights at the end of the initial period of five years.
The company added that it has committed to an initial exploration budget of $10 million for the region.
As well, Ivanhoe stated that much of the permitted land is covered by Kalahari sand and Karoo volcanics, similar to the company's Kamoa-Kakula licenses in Democratic Republic of Congo (DRC), from which it began exporting copper in mid-2021.
The company currently ships its production from the mine by rail via the so-called Lobito Corridor that crosses Angola.
Anglo American and Rio Tinto also have greenfield exploration activities in the same region of Angola.
Shares of Ivanhoe Mines slipped 3% to $10.86 in Monday afternoon trading.
Contact Sean at sean@proactiveinvestors.com