Zijin will receive 76,817,020 common shares of Ivanhoe Mines through a private placement at a price of C$1.36 ($1.08) per share.
Ivanhoe Mines plans to use the proceeds to accelerate its projects in southern Africa and for working capital and general corporate purposes.
Ivanhoe Mines executive chairman Robert Friedland said: "We also have agreed to continue to explore additional opportunities to collaborate on the advancement of all three of our world-class projects."
The companies also intend to work together on developing Kamoa copper discovery in Congo.
Zijin Mining chairman Chen Jinghe said, Zijin Mining "is honoured to have the opportunity to invest in Ivanhoe Mines, which controls the world-class, high-grade Kamoa Copper Project, Platreef Platinum-Group-Metals Project and Kipushi Zinc-Copper Project, all three of which have great untapped potential.
"We believe these are among the most attractive undeveloped mineral deposits in the world."
Subject to regulatory approvals, Zijin private placement is expected to be concluded on or about 20 April 2015.
