By Robb M. Stewart
Ivanhoe Mines Ltd.’s shares advanced Wednesday after the mining company denied involvement in a corruption case against an individual it said is a shareholder in a company it sought to reach a deal with over Congo exploration permits.
In morning trading, the shares were 7.1% higher at C$10.68. They are now up 3.5% so far this year.
Ivanhoe in a statement Tuesday afternoon said it wasn’t involved in a case in Congo against a man who faces charges of corruption and influence peddling and who the Canadian mining company said is a shareholder in Congo Bantu Mining SARL, or Cobamin, a company that Ivanhoe last year proposed a deal with to earn into three exploration permits.
Ivanhoe said it tried to negotiate final agreements with Cobamin, but a deal wasn’t struck and no payment was made to Cobamin under the agreement proposed by the companies. It said it filed in September for arbitration, as well as an application, as well as for emergency measures against Cobamin with the International Chamber of Commerce, and it expects the main arbitration to begin in the first quarter of next year.
Ivanhoe Mines said it working with its legal counsel to determine the best path forward for shareholders in terms of the arbitration proceeding, and added the matter doesn’t relate to the company’s existing projects in Congo.
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