The second round of Ivanhoe Australia’s $180 million equity raising program has been concluded, following the receipt of Aus$92 million from the company’s largest shareholder Ivanhoe Mines. The money includes a net funding contribution of Aus$62 million after the extinguishment of an Aus$30 million inter-company debt.
“This significant investment demonstrates that, despite the demands of the full-scale construction of the huge Oyu Tolgoi project in Mongolia, Ivanhoe Mines remains very confident in the prospectivity of our project portfolio in the Cloncurry region in northwestern Queensland,” says Ivanhoe Australia’s chief executive officer Peter Reeve.
“Completion of the equity raising program will ensure that the Osborne Copper-Gold project will be brought into production as planned in March 2012 and will support the completion of major studies on the Merlin, Mount Dore and Mount Elliott projects.”
Ivanhoe Australia owns a significant package of mineral resources in the highly mineralized Cloncurry district near Mt Isa in Queensland. Exploration to date has revealed a portfolio of copper, molybdenum, rhenium and gold resources. The Mount Dore project includes the Merlin deposit which is regarded as the world’s highest grade molybdenum and rhenium tenement.
The Osborne project was acquired from Barrick Australia in September 2010 and comprises mining and processing facilities, including a 2 million tonne per annum copper and gold flotation concentrator, which is undergoing repair and maintenance.
Ivanhoe’s chairman Robert Friedland says, “While Ivanhoe Mines is looking forward with anticipation to the start of cashflow from Ivanhoe Australia’s very low-cost Osborne acquisition, a major part of our mission here remains the ongoing search for a deposit that would rank as an industry elephant, which would not be out of place in this field.”