"When issued" Trading in Ivanhoe Mines rights Begins December 23, 2010, in Advance of Planned Start of Regular Rights Trading in
December 22 2010 - 8:29AM
Marketwired
Ivanhoe Mines (TSX: IVN)(NYSE: IVN)(NASDAQ: IVN) announced today
that rights to be issued under the company's previously announced
rights offering will begin trading on a "when issued" basis on
Thursday, December 23, 2010, on the Toronto Stock Exchange (TSX)
under the symbol "IVN.RT," on the New York Stock Exchange (NYSE)
under the symbol "IVN RT WI" and on the NASDAQ Stock Market under
the symbol "IVN.Z."
Rights may trade on a "when issued" basis before they are
formally issued and the resulting conditional transactions are
settled after the rights have been issued to shareholders.
The "when issued" trading of Ivanhoe rights on the TSX will
cease on December 31, 2010, and "regular way" trading will begin on
January 4, 2011, under the symbol "IVN.RT." The "when issued"
trading of Ivanhoe rights will end on both the NYSE and NASDAQ on
January 5, 2011, and "regular way" trading will begin on January 6,
2011, on the NYSE under the symbol "IVN RT" and on NASDAQ under the
symbol "IVN.R."
Details of the rights offering - which is expected to raise up
to US$1.2 billion to help finance construction of the Oyu Tolgoi
copper-gold mine development in Mongolia - are contained in the
final prospectus dated December 16, 2010, that is available on
Sedar and EDGAR and were summarized in the news release issued by
Ivanhoe Mines on December 18, 2010.
Other key terms include:
-- Each Ivanhoe Mines shareholder will receive one transferable right for
each common share owned as of December 31, 2010, which is the record
date for the rights offering.
-- Every 100 rights will allow the holder to purchase 15 common shares of
Ivanhoe. Every 20 rights, for example, will entitle the holder to
purchase three shares. Each holder may choose a subscription price of
either US$13.88 per share or CDN$13.93 per share.
-- The US and Canadian subscription prices represent traditional global
rights offering discounts of approximately 43% and 44% respectively to
the weighted-average closing prices of US$24.53 on the NYSE and
CDN$24.73 on the TSX over the five trading days prior to December 16,
2010.
-- "Regular way" trading of the rights on the TSX will stop at 12 noon
Eastern Standard Time (EST) on January 26, 2011. On the NYSE and NASDAQ,
"regular way" trading of the rights will stop at the close of trading on
January 25, 2011.
-- A rights-offering prospectus and rights certificate will be mailed to
each shareholder of record on January 5, 2011, subject to applicable
law.
-- Shareholders who do not wish to exercise their rights to buy new common
shares under the offering will have the option of selling the rights
that they receive from Ivanhoe Mines through the TSX, the NYSE or
NASDAQ.
-- The rights offering will expire at 5:00 p.m. (EST) on January 26, 2011.
Rights not exercised prior to the expiry will be void and of no value.
-- The rights offering is scheduled to close on February 2, 2011.
-- Shareholders who do not exercise all of their rights will have their
present ownership interests in Ivanhoe Mines reduced, as a percentage of
the total outstanding common shares, as a result of the rights offering.
-- Approximately 85 million common shares are expected to be issued under
the rights offering, which would represent approximately 15.0% of
Ivanhoe's outstanding shares as of the date of the prospectus.
Persons trading in the "when issued" market should be aware that
the acquisition and beneficial ownership reporting rules under
Canadian securities laws will apply to purchases of "when issued"
rights of Ivanhoe Mines; U.S. beneficial ownership reporting rules
also will apply.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Ivanhoe Mines (www.ivanhoemines.com)
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
world-scale, Oyu Tolgoi copper-gold mine development project in
southern Mongolia; its 57% interest in Mongolian coal miner
SouthGobi Resources (TSX: SGQ)(HK: 1878); a 62% interest in Ivanhoe
Australia (TSX: IVA)(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 Kyzyl Gold Project in Kazakhstan.
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 harbour" 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
project-finance package 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
heading "Risk Factors" included in the rights offering prospectus
or in the Company's Annual Information Form, which are filed on
Sedar and EDGAR. The reader is cautioned not to place undue
reliance on forward-looking information or statements.
The issuer has filed a registration statement (including a
prospectus) with the SEC for the rights offering to which this
communication relates. Before investing, individuals should read
the prospectus in that registration statement and other documents
the issuer has filed with the SEC for more complete information
about the issuer and the rights offering. The documents are
available free of charge by visiting EDGAR on the SEC website at
www.sec.gov. Alternatively, the issuer or dealer managers
participating in the rights offering will arrange to send you the
prospectus if you request it by calling toll-free
1-877-858-5407.
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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