Ivanhoe Mines and Chalco Agree to 30-Day Extension for Proportional Takeover Bid for SouthGobi Resources

Thu Aug 2, 2012 8:21am EDT

* Reuters is not responsible for the content in this press release.

Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) and Aluminum
Corporation of China Limited (SHSE:601600)(HKSE:2600)(NYSE:ACH) -

    References are made to the announcements published by Aluminum
Corporation of China Limited ("Chalco") and Ivanhoe Mines Ltd.
("Ivanhoe") on April 2, 2012 and July 3, 2012 (Hong Kong Time),
respectively. Chalco and Ivanhoe announced today they have agreed to
extend by an additional 30 days the time for Chalco to make a
proportional takeover bid for up to 60%, but not less than 56%, of the
common shares of SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) at C$8.48
per share. Instead of August 3, 2012, Chalco has now agreed to make a
take-over bid on or before September 4, 2012, and thereafter the bid must
be taken up after 36 days at the earliest if conditions are all met. 

    Chalco's original intended bid was announced on April 2, 2012 and a
30-day extension was announced on July 3, 2012. Ivanhoe has entered into
a lock-up agreement with Chalco and has agreed to tender all of its
SouthGobi shares to Chalco. With the exception of the additional 30-day
extension to the date of launching the bid and the date the bid is
expected to be taken up at the latest, all other terms and conditions of
the lock-up agreement remain in place.

    The proportional offer from Chalco will be made by way of a takeover-bid
circular under British Columbia law and will be made to all SouthGobi

    The proportional offer by Chalco is subject to all statutory and
regulatory approvals, including Canadian and Chinese regulatory
approvals, and Chalco shareholder approval. On April 25, 2012, Ivanhoe
and Chalco confirmed they will cooperate with the Government of Mongolia
to ensure any requirements under the country's new strategic foreign
investment legislation are satisfied. In order to do so, additional time
is needed to engage with the Mongolian Government and review the terms
and conditions of the transaction. 

    About Ivanhoe Mines

    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 Oyu Tolgoi copper-gold-silver
mine development project in southern Mongolia; a 58% interest in
Mongolian coal miner SouthGobi Resources (TSX:SGQ)(HK:1878); a 59%
interest in copper-gold miner Ivanhoe Australia (TSX:IVA)(ASX:IVA); and a
50% interest in Altynalmas Gold, a private company developing the Kyzyl
Gold Project in Kazakhstan.

    About Chalco

    Chalco is headquartered in Beijing and listed in Shanghai (601600.SH),
Hong Kong (2600.HK) and NYSE (ACH.US) as a diversified Aluminum and
mining company. Apart from its integrated Aluminum portfolio and the
dominant position in China's Aluminum industry, it has also started to
penetrate other growth-oriented mining areas. The Chairman and CEO of
Chalco is Mr. Xiong Weiping and Mr. Luo Jianchuan is the President.

    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 harbor"
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 statements
made with respect to the proportional offer from Chalco. 

    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
"Risks and Uncertainties" elsewhere in the Company's MD&A. Readers are
cautioned not to place undue reliance on forward-looking information or

Ivanhoe Mines Ltd.
Jason Combes
+1 604.648.3920

Ivanhoe Mines Ltd.
Tony Shaffer
+1 604.648.3934

Copyright 2012, Market Wire, All rights reserved.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.