The retail giant is buying a stake in an international mining company in a bid to secure a foothold in the lucrative lucrative field.
Deep Mining is a joint venture between the US mining giant Rio Tinto and the private Chinese mining company Huayi, which has been working with the US government to mine the mineral gold.
In a filing with the Securities and Exchange Commission on Wednesday, Rio Tandems head of strategic acquisitions, Chris Lipschutz, said Deep Mining was looking to acquire up to 75% of the company in an initial investment of $100 million.
Lipschulz said the transaction would be completed in March 2019, but he declined to provide a timeframe for completion.
The purchase price of Deep Mining, based in the US state of Minnesota, is listed at $1.19 per share.
Rio Tandem said in a statement on Thursday that it was “excited” by Deep Mining’s announcement, which will “strengthen our commitment to global mining, while providing a competitive edge to the US consumer and local economies”.
The company, founded in the early 2000s, said it had $5.2 billion in revenue in 2016, compared with $4.6 billion for Rio Tands.