(Adds details on offering, context)
May 20 Ivanhoe Mines Ltd said on
Tuesday it has entered into agreements to raise C$150 million
($137.65 million) in a share and warrants offering. The funds
would be used to develop its mining projects in the Democratic
Republic of Congo.
The fundraising comes after Ivanhoe said last week that it
would not be able to advance development at its Kamoa copper
discovery and Kipushi zinc and copper mine in the Congo without
Ivanhoe said C$125 million of the funds would come from a
bought deal with a syndicate of investment banks. The remaining
C$25 million would be raised in a private placement with Robert
Friedland, Ivanhoe's founder and chairman.
The underwriters, led by BMO Capital Markets, CIBC and
Macquarie Capital Markets Canada, have agreed to buy 88.3
million Ivanhoe units at a price of C$1.50 a unit. Each unit
consists of one common share and one share purchase warrant.
Ivanhoe's shares were halted before the news. The stock was
last up 1 Canadian cent at C$1.64 on the Toronto Stock Exchange
The offering is expected to close around June 10.
($1 = 1.0898 Canadian dollars)
(Reporting by Nicole Mordant in Vancouver; Editing by Bernard
Orr and Eric Walsh)