Ivanhoe Mines Ltd.: Alert Issued About False and Misleading Statements Published by the Australian and Business Spectator
MELBOURNE, AUSTRALIA--(Marketwire - Sept. 15, 2010) - Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) -
Editors and journalists are advised that stories published in The Australian newspaper on September 15, 2010, and on the Business Spectator website on September 14, 2010, contained false and misleading information concerning Ivanhoe Mines and the rapidly advancing Oyu Tolgoi mine development project.
Flouting fundamental, fair journalistic practice, none of the instances of conjecture and blinkered speculation presented as facts were checked with Ivanhoe Mines in advance of publication.
For example:
The curiously similar claims by both publications that Ivanhoe Mines alone has delayed the selection of an arbitrator to evaluate a complaint by Rio Tinto are false. Ivanhoe has negotiated in good faith throughout the process in an effort to reach agreement on an arbitrator who is entirely independent of the parties and the issues to be considered in the arbitration. The truth is that Ivanhoe Mines and Rio Tinto previously reached agreement on an arbitrator, but were unable to proceed because of a conflict later identified by the proposed arbitrator involving a company associated with Rio Tinto. Rio Tinto and Ivanhoe Mines subsequently have reached a tentative agreement on a new, independent arbitrator, subject to his clearance of conflicts, and Ivanhoe expects that the selection process will be concluded shortly.
The claim that Ivanhoe Mines has stated that the cost to build and initiate operations at the first phase of the Oyu Tolgoi copper-gold project will be US$4 billion is false. As Ivanhoe Mines announced on May 11, 2010, prominent, independent consultants estimated that the required investment during the next three years would be approximately US$4.6 billion – which includes a $1 billion investment on a portion of the phase-two development of the planned underground mine.
The allegation by The Australian that Ivanhoe Mines is substantially underestimating the capital cost is glib editorializing, masqueraded as news, unsupported by any offered evidence and has no foundation in fact. The project is ahead of schedule and major contracts are within budget.
The claim by the Business Spectator, that Ivanhoe Mines "purported to introduce" a shareholders' rights plan earlier this year, is just plain bizarre. It is a matter of unquestionable public record that the introduction of a rights plan was endorsed by 95% of the votes cast by minority shareholders at Ivanhoe's annual general meeting on May 7, 2010, in part to prevent a creeping takeover of the company.
Rio Tinto is not limited to a 44% stake in Ivanhoe Mines under its current agreement; presently, it is eligible to acquire up to 46.65% of Ivanhoe's common shares.
Investors and the general public are entitled to expect factual reporting and commentaries from professional business media. Ivanhoe Mines remains prepared to assist with fact checking. Extensive information also is readily available on the Ivanhoe Mines website: www.ivanhoemines.com.
For more information, please contact Ivanhoe Mines Ltd.
Bob Williamson
1 604 331 9880
www.ivanhoemines.com
Editors and journalists are advised that stories published in The Australian newspaper on September 15, 2010, and on the Business Spectator website on September 14, 2010, contained false and misleading information concerning Ivanhoe Mines and the rapidly advancing Oyu Tolgoi mine development project.
Flouting fundamental, fair journalistic practice, none of the instances of conjecture and blinkered speculation presented as facts were checked with Ivanhoe Mines in advance of publication.
For example:
The curiously similar claims by both publications that Ivanhoe Mines alone has delayed the selection of an arbitrator to evaluate a complaint by Rio Tinto are false. Ivanhoe has negotiated in good faith throughout the process in an effort to reach agreement on an arbitrator who is entirely independent of the parties and the issues to be considered in the arbitration. The truth is that Ivanhoe Mines and Rio Tinto previously reached agreement on an arbitrator, but were unable to proceed because of a conflict later identified by the proposed arbitrator involving a company associated with Rio Tinto. Rio Tinto and Ivanhoe Mines subsequently have reached a tentative agreement on a new, independent arbitrator, subject to his clearance of conflicts, and Ivanhoe expects that the selection process will be concluded shortly.
The claim that Ivanhoe Mines has stated that the cost to build and initiate operations at the first phase of the Oyu Tolgoi copper-gold project will be US$4 billion is false. As Ivanhoe Mines announced on May 11, 2010, prominent, independent consultants estimated that the required investment during the next three years would be approximately US$4.6 billion – which includes a $1 billion investment on a portion of the phase-two development of the planned underground mine.
The allegation by The Australian that Ivanhoe Mines is substantially underestimating the capital cost is glib editorializing, masqueraded as news, unsupported by any offered evidence and has no foundation in fact. The project is ahead of schedule and major contracts are within budget.
The claim by the Business Spectator, that Ivanhoe Mines "purported to introduce" a shareholders' rights plan earlier this year, is just plain bizarre. It is a matter of unquestionable public record that the introduction of a rights plan was endorsed by 95% of the votes cast by minority shareholders at Ivanhoe's annual general meeting on May 7, 2010, in part to prevent a creeping takeover of the company.
Rio Tinto is not limited to a 44% stake in Ivanhoe Mines under its current agreement; presently, it is eligible to acquire up to 46.65% of Ivanhoe's common shares.
Investors and the general public are entitled to expect factual reporting and commentaries from professional business media. Ivanhoe Mines remains prepared to assist with fact checking. Extensive information also is readily available on the Ivanhoe Mines website: www.ivanhoemines.com.
For more information, please contact Ivanhoe Mines Ltd.
Bob Williamson
1 604 331 9880
www.ivanhoemines.com
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