Ivanhoe Mines Announces Successful Completion of Rights Offering
January 27 2011 - 8:30AM
Marketwired
Ivanhoe Mines (TSX: IVN)(NYSE: IVN)(NASDAQ: IVN) announced today
that its strategic rights offering expired on January 26, 2011, as
scheduled. Based on preliminary results that are subject to
confirmation of amounts that will be received from brokers using
guaranteed delivery procedures, Ivanhoe estimates it will receive
gross proceeds of approximately US$1.18 billion from the rights
offering to help finance construction of the Oyu Tolgoi copper-gold
project in Mongolia.
Also based on preliminary results, Ivanhoe expects to issue a
total of approximately 85 million new common shares through the
rights offering, which would represent approximately 99% of the
maximum number of common shares available under the rights
offering.
Robert Friedland and Rio Tinto, Ivanhoe Mines' two largest
shareholders, both exercised all of their respective rights that
were issued to them in the rights offering. Mr. Friedland also
purchased an additional 1.5 million rights on the open market and
exercised them to acquire additional common shares. Based on the
preliminary results, Mr. Friedland's ownership stake in Ivanhoe
Mines now is 15.5%; Rio Tinto has maintained its current ownership
at 40.3%.
Ivanhoe expects that the rights offering will close on February
2, 2011, to accommodate those who exercised rights using guaranteed
delivery procedures. Ivanhoe intends to mail new common shares
acquired through the rights offering to registered subscribers on
or promptly after the scheduled closing of the offering.
The Board of Directors of Ivanhoe Mines extends its appreciation
to all shareholders who participated in, and contributed to, the
success of the rights offering.
Citi was the lead dealer manager for the rights offering. BMO
Capital Markets and CIBC were co-dealer managers.
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 (TSX: IVN)(NYSE: IVN)(NASDAQ: 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 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 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 investors
the prospectus upon requests made 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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