Ivanhoe Mines Closes US$241 Million Private Placement With Rio Tinto
March 22 2010 - 8:50AM
Marketwired
Robert Friedland, Executive Chairman of Ivanhoe Mines (TSX:
IVN)(NYSE: IVN)(NASDAQ: IVN), announced today that the company has
closed its private placement with Rio Tinto that was announced on
March 1, 2010.
As part of the private placement agreement, Ivanhoe Mines has
issued 15 million common shares to Rio Tinto at CDN$16.31 per
share, for total proceeds of CDN$244.7 million (US$241.1 million
equivalent). Ivanhoe Mines has used CDN$198.2 million (US$195.4
million equivalent) of the proceeds to purchase from Rio Tinto key
mining and milling equipment for the Oyu Tolgoi copper-gold mining
complex in Mongolia. Ivanhoe Mines has received the balance of the
proceeds, CDN$46.4 million (US$45.7 million equivalent), which will
be used to purchase additional equipment and for general corporate
purposes.
The equipment being acquired from Rio Tinto includes principal
components for the 100,000-tonne-per-day Oyu Tolgoi phase-one
copper-gold concentrator, including two large, 38-foot-diameter,
semi-autogenous grinding (SAG) mills, four ball mills, re-grind
mills, crushers, motors, gearless drives, conveyors and flotation
cells. Also included are the hoist and major components for the
sinking of Shaft #2 - the 10-metre-diameter, main production shaft
for the underground block-cave mine at the Hugo North Deposit.
With the completion of this transaction, Rio Tinto has increased
its ownership in Ivanhoe Mines from 19.6% to 22.4%. Rio Tinto holds
rights to subscribe for common shares from Ivanhoe's treasury and
also to make purchases on the open market that could increase Rio
Tinto's stake in Ivanhoe to up to 46.6% during the next 19
months.
About Ivanhoe Mines
Ivanhoe Mines is an international mining company with operations
focused in the Asia Pacific region. Ivanhoe's core assets include
its world-scale, Oyu Tolgoi copper-gold mine development project in
southern Mongolia.
Ivanhoe Mines' other core assets are its 65% interest in
Mongolian coal miner SouthGobi Energy Resources (TSX: SGQ)(SEHK:
1878); an 81% interest in Ivanhoe Australia (ASX: IVA), a
copper-gold-uranium-molybdenum-rhenium exploration and development
company; and a 50% interest in Altynalmas Gold Ltd., a private
company developing the Bakyrchik and the Bolshevik gold deposits in
Kazakhstan.
Ivanhoe Mines' shares are listed on the New York, NASDAQ and
Toronto stock exchanges under the symbol IVN.
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.
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
heading "Risks and Uncertainties" elsewhere in the Company's
MD&A filed at www.SEDAR.com. The reader is cautioned not to
place undue reliance on forward-looking information or statements.
Except as required by law, the Company does not assume the
obligation to revise or update these forward-looking statements
after the date of this document or to revise them to reflect the
occurrence of future, unanticipated events.
Contacts: Ivanhoe Mines Ltd. Bill Trenaman Investors
+1.604.688.5755 Ivanhoe Mines Ltd. Bob Williamson Media
+1.604.331.9830 www.ivanhoemines.com
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