Key Developments For Ivanhoe Mines Ltd
Ivanhoe Mines Ltd (IVN) (NYSE Arca)
Rio Tinto Limited Increases Ownership In Ivanhoe Mines, Ltd.
Rio Tinto plc announced that it has completed the second tranche of its private placement investment in Ivanhoe Mines, Ltd., increasing its ownership by 9.8% to 19.7% of the Company's common shares. The second tranche consists of 46,304,473 common shares at a subscription price of USD8.38 per share for a total consideration of USD388,031,483.74. If Rio Tinto were to exercise and convert all of its remaining warrants and securities of the Company, it would own approximately 257,931,578 common shares of Ivanhoe representing 43.1% of the Company's common shares.
Entree Gold Inc. Receives Mongolian Mining Licences In Joint Venture With Ivanhoe Mines Ltd.'s Ivanhoe Mines Mongolia Inc. LLC
Entree Gold Inc. announced that its application for conversion of the Shivee Tolgoi and Javhlant exploration concessions to mining licences has been approved by the Mineral Resources Authority of Mongolia and the licences have been received. The eastern portion of the Shivee Tolgoi licence and the entire Javhlant licence are subject to a joint venture with Ivanhoe Mines Ltd., through its subsidiary, Ivanhoe Mines Mongolia Inc. LLC. Mining licences have a 30 year term with two renewals of 20 years each possible. Title to the portion of the Shivee Tolgoi licence outside of the joint venture (Shivee Tolgoi West) is 100% owned by Entree LLC, Entree Gold's Mongolian subsidiary.
Entree Gold Inc. Reviews Investment Agreement Signed Between Ivanhoe Mines, Ltd And Rio Tinto plc
Entree Gold Inc. announced that it has reviewed the Investment Agreement that was signed between Ivanhoe Mines, Ltd., its subsidiary, Ivanhoe Mines Mongolia Inc. LLC (IMMI), Entree Gold's largest shareholder Rio Tinto plc. The Investment Agreement has an initial term of 30 years with the option to renew for an additional 20 years. Ivanhoe Mines is currently working on an updated Integrated Development Plan which will expand upon the original plan issued in 2005 and further clarify the next phases of development and eventual mining that is anticipated to begin in 2013. Current resources are expected to support open-pit and underground mining for at least 60 years and potential exists to expand the available resources, particularly on the Lookout Hill property which includes the joint venture ground. With the inclusion of the Mongolian Government as a partner and Rio Tinto's recent endorsement of the project through the advanced settlement of the Tranche 2 private placement financing, strong support in the continued long term success of the project is conveyed. These parties have acknowledged the projected mine life could be as much as 100 years and have a strong commitment to the ongoing success of this project and all have a vested interest in the future benefits of this outstanding opportunity.
Rio Tinto plc And Ivanhoe Mines, Ltd. In Talk To Raise Up To $2 Billion For Oyu Tolgoi-DJ
Dow Jones reported that Rio Tinto plc and Ivanhoe Mines, Ltd. are in talks to raise as much as $2 billion to fund development of the Oyu Tolgoi copper gold mine in Mongolia. Rio Tinto is discussing project finance with groups such as the International Finance Corp., part of the World Bank, and the European Bank for Reconstruction and Development.
Rio Tinto plc To Double Its Interest In Ivanhoe Mines To 19.7% By Completing USD388 Million Tranche 2 Equity Placement
Ivanhoe Mines, Ltd. announced that Ivanhoe Mines has been formally notified that Rio Tinto plc immediately intends to complete its Tranche 2 private placement financing - consisting of 46,304,473 Ivanhoe shares at USD8.38 per share - for net proceeds to Ivanhoe of USD388 million. Upon completion of the financing, expected within 10 business days, Rio Tinto's equity ownership in Ivanhoe Mines will increase from its current level of 9.9% to 19.7%. The terms of the private placement were negotiated as part of the original Rio Tinto-Ivanhoe Mines strategic partnership announced in October 2006 to develop the Oyu Tolgoi copper and gold mining complex in southern Mongolia, approximately 80 kilometres north of the Mongolia-China border. Receipt of the funds will increase Ivanhoe's consolidated cash position to approximately USD725 million. The Tranche 2 proceeds of USD388 million from Rio Tinto will be used to help build and commission the open-pit mine at Oyu Tolgoi and to advance development of the underground block-cave mine. Under the current financing agreement with Ivanhoe Mines, Rio Tinto has rights to subscribe for common shares from Ivanhoe's treasury representing up to 43.1% of Ivanhoe Mines and, during the next two years, Rio Tinto may increase this stake to 46.6% through purchases on the open market.
