Ivanhoe Mines is launching a strategic conditional rights offering which is expected to raise between US$800 million and US$1 billion.
The offer, in which all existing shareholders, subject to applicable law, may participate on an equal, proportional basis, is aimed at supporting progress towards and early start-up of the Oyu Tolgoi Copper-Gold Complex in Mongolia.
Ivanhoe's executive chairman and chief executive officer Robert Friedland says, "The goal of the offering is to ensure that Ivanhoe remains in a strong financial position to bring Oyu Tolgoi into operation ahead of schedule in 2012."
Robert Friedland, the founder and largest individual shareholder of Ivanhoe Mines, intends to participate in the rights offering to the maximum permitted level to maintain his 18.3% ownership stake in the company.
"Successful completion of this offering will significantly de-risk the Oyu Tolgoi project, which we are developing in partnership with the Government of Mongolia to be one of the world's largest and lowest-cost copper and gold producers.
"We already have 5300 people working on the project and Oyu Tolgoi LLC is investing $58 million in skills training, instruction centres and scholarships so Mongolians can play key roles in building a sustainable future by developing their mineral endowment."
He says discussions are progressing with a group of international financial institutions on a separate debt-financing package that is expected to close in the first half of 2011. The proposed multi-billion-dollar package is being considered by a core lending group comprised of the European Bank for Reconstruction and Development, the International Finance Corporation, Export Development Canada, BNP Paribas and Standard Chartered.
www.ivanhoemines.com

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