Ivanhoe Mines Announces Agreement to Proceed With a US$1.8 Billion Rights Offering, Open to All Shareholders, With a Standby ...
18 April 2012 - 10:17PM
Marketwired
Ivanhoe Mines (TSX:IVN)(NASDAQ:IVN)(NYSE:IVN) announced today that
it has agreed to proceed with a rights offering to holders of
common shares of Ivanhoe Mines to raise up to approximately US$1.8
billion in gross proceeds as part of a memorandum of agreement with
majority shareholder Rio Tinto.
The rights offering will be supported by a standby commitment
for the full amount from Rio Tinto, or a member of the Rio Tinto
Group.
All existing shareholders of Ivanhoe Mines, subject to
applicable law, may participate on an equal, proportional basis in
purchasing additional common shares of Ivanhoe Mines at a
subscription price of C$8.34.
This rights offering will follow a procedure similar to the
rights offering completed by Ivanhoe Mines in January 2011.
The proceeds of the rights offering will be used as part of the
comprehensive financing plan to cover all projected capital
requirements for the company's flagship Oyu Tolgoi
copper-gold-silver mine development project in southern Mongolia
for the next four to five years.
Rio Tinto will receive a commitment fee from Ivanhoe Mines equal
to 4% of the rights offering's gross proceeds, which Rio Tinto may
elect to reinvest in Ivanhoe shares.
Ivanhoe Mines has agreed to file a rights-offering preliminary
prospectus with Canadian securities regulators in early May, to be
followed by the filing of a final prospectus as soon as
practicable, and a registration statement on Form F-10 with the
U.S. Securities and Exchange Commission.
This news release shall not constitute an offer to sell, nor the
solicitation of an offer to buy, any securities in the United
States; nor shall there be any sale of securities mentioned in this
news release in any state of the United States in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
About Ivanhoe Mines
Ivanhoe Mines (NYSE:IVN)(NASDAQ:IVN)(TSX:IVN) is an
international mining company with operations focused in the Asia
Pacific region. Assets include the company's 66% interest in the
Oyu Tolgoi copper-gold-silver mine development project in southern
Mongolia; a 58% interest in Mongolian coal miner SouthGobi
Resources (TSX:SGQ)(HKSE:1878); a 59% interest in copper-gold miner
Ivanhoe Australia (ASX:IVA)(TSX:IVA), which also is developing a
molybdenum-rhenium discovery; and a 50% interest in Altynalmas
Gold, a private company developing the Kyzyl Gold Project in
Kazakhstan.
Ivanhoe Mines' shares are listed on the New York, NASDAQ and
Toronto stock exchanges under the symbol IVN.
Website: www.ivanhoemines.com
Forward-looking statements
Certain statements made herein, including statements relating to
matters that are not historical facts and statements of our
beliefs, intentions and expectations about developments, results
and events which will or may occur in the future, constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation and "forward-looking statements"
within the meaning of the "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995.
Forward-looking information and statements are typically identified
by words such as "anticipate," "could," "should," "expect," "seek,"
"may," "intend," "likely," "plan," "estimate," "will," "believe"
and similar expressions suggesting future outcomes or statements
regarding an outlook. These include, but are not limited to,
whether or not the above contemplated rights offering or financing
plan will be successfully completed in the future, and other
statements that are not historical facts.
All such forward-looking information and statements are based on
certain assumptions and analyses made by Ivanhoe Mines' management
in light of their experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are appropriate in the
circumstances. These statements, however, are subject to a variety
of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected
in the forward-looking information or statements. Important factors
that could cause actual results to differ from these
forward-looking statements include those described under the
headings "Risk Factors" and "Risks and Uncertainties" elsewhere in
the Company's periodic filings with Canadian and U.S. securities
regulators. Readers are cautioned not to place undue reliance on
forward-looking information or statements.
Contacts: Ivanhoe Mines Ltd. - Investors Bill Trenaman
+1.604.688.5755 Ivanhoe Mines Ltd. - Media Bob Williamson
+1.604.688.5755 www.ivanhoemines.com
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