Saudi Arabian Mining Company (Maaden) has signed the conditional common shares subscription agreement with Ivanhoe Electric (IE), a New York Stock Exchange-listed mineral exploration and development company.

The signing of the agreement will result in the implementation of the acquisition of 9.90 percent equity interest in IE and the formation of the exploration joint venture (JV), the company said in a statement to the Saudi stock exchange.

The formalities and the new venture are expected to be completed in the third quarter of 2023.

In January, Maaden signed a heads-of-terms agreement to acquire equity interest in IE by purchasing 10.20 million shares for nearly 474 million Saudi riyals ($126.40 million).

As part of the agreement, Maaden and IE will establish a 50:50 JV to explore copper, gold, nickel and silver in Saudi Arabia.

The JV will explore approximately 48,500 square kilometres of selected license areas.

In addition, IE will invest nearly $66 million from funds raised through the share subscription to the JV to fund the purchase of three new-generation Typhoon machines and the exploration of prospective lands to be provided by Maaden for metallic minerals within the Kingdom.

(Writing by D Madhura; Editing by Anoop Menon)