Ivanhoe Australia Completes A$125 Million IPO
August 05 2008 - 8:39AM
Marketwired
MELBOURNE, AUSTRALIA (NYSE: IVN)(NASDAQ: IVN) Executive Chairman
Robert Friedland today announced the successful completion of
subsidiary Ivanhoe Australia's A$125 million initial public
offering.
Ivanhoe Australia, which remains 80%-owned by Canada-based
parent Ivanhoe Mines, will begin trading on the Australian Stock
Exchange tomorrow (August 6) under the symbol IVA.
The Ivanhoe Australia IPO, which closed August 1, sold 62.5
million shares at A$2 each. The company's initial market
capitalization is A$625 million. Ivanhoe Australia previously was
100%-owned by Ivanhoe Mines.
The offering, which was heavily supported by investors in
Australia, the United States, Canada and Asia, has raised capital
for the ongoing exploration and development of Ivanhoe Australia's
extensive tenements that cover 2,250 square kilometres in the Mount
Isa-Cloncurry mineral district in northwest Queensland - one of the
world's richest mineral-producing regions.
Ivanhoe Australia's current focus is on the preparation of
development studies for its iron-oxide copper-gold (IOCG)
discoveries at three key projects: Mount Elliott, Mount Dore and
the Starra Line. A high-grade IOCG zone has been delineated at the
Mount Elliott Project within a major, bulk-minable copper-gold
system. An infill-drilling program at the Mount Dore project is
delineating a large oxide-copper resource suitable for heap-leach,
solvent extraction-electrowinning processing - as well as testing
deeper, polymetallic and copper-gold sulfide mineralization.
Re-evaluation of the previous copper-gold mines on the Starra Line
is underway. Independent, 43-101-compliant estimates of the mineral
resources identified to date at the three projects are expected to
be completed in the near future. Significant uranium potential also
has been identified in the company's northern and central
tenements, consistent with the results of previous operators,
including Rio Tinto.
"With the majority of the proceeds from the initial public
offering earmarked for exploration and development over the next
two years, Ivanhoe Australia now has the dedicated financial
resources it requires to move on with the discovery and development
assessment processes and to expand its deep-drilling exploration
program to probe beyond the limits of previously discovered
resources," Mr. Friedland said.
Mr. Friedland, who also is Chairman of Ivanhoe Australia, said
investors were enthusiastic about the company's potential to become
a significant copper, gold and uranium producer in a district that
also has significant additional potential for zinc, silver and
cobalt. "The Mount Isa-Cloncurry district of Queensland is one of
the great mineral storehouses of the world and will become one of
the most important suppliers to China's emergence as the world's
fastest growing manufacturing hub."
Ivanhoe Mines will receive a total of A$38.4 million from
Ivanhoe Australia as partial repayment of an inter-company loan and
full repayment of a loan to acquire shares in Exco Resources.
Ivanhoe Australia currently owns 19.9% of Exco, an Australian
company that holds exploration tenements in the Cloncurry district
totalling 4,100 square kilometres - including 560 square kilometres
that are covered by an 80% earn-in joint-venture agreement with
Ivanhoe Australia.
Ivanhoe Mines shares are listed on the Toronto, New York and
NASDAQ stock exchanges under the symbol IVN.
Forward-Looking Statements - This news release contains
forward-looking statements. Forward-looking statements are
statements that relate to future events. In some cases, you can
identify forward-looking statements by terminology such as "may",
"should", "expects", "plans", "anticipates", "believes",
"estimates", "predicts", "potential" or "continue," or the negative
of these terms, or other comparable terminology. These statements
are only predictions and involve known and unknown risks,
uncertainties and other factors that may cause our, or our
industry's actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements. While these
forward-looking statements, and any assumptions upon which they are
based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost
always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested
herein. Readers are referred to the sections entitled "Risk
Factors" in Ivanhoe Mines' periodic filings with Canadian and US
Securities Commissions.
Contacts: Ivanhoe Mines Ltd. Bill Trenaman Investor Relations
(604) 688-5755 Ivanhoe Mines Ltd. Bob Williamson Media (604)
688-5755 Website: www.ivanhoemines.com
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