Ivanhoe aims to raise $1.2 bln in rights offering
* 100 rights to equal 15 common shares
* Shares priced at C$13.93 on TSX, $13.88 on NYSE
* Shares up 2.25 percent at C$25.01 on TSX (In U.S. dollars unless noted)
TORONTO, Dec 17 (Reuters) - Ivanhoe Mines (IVN.TO) said on Friday it would raise up $1.2 billion in a strategic rights offering to fund the development of the first phase of its massive Oyu Tolgoi copper and gold project in southern Mongolia.
The rights offering is structured so that every 100 rights can be exchanged for 15 common shares in the company.
The shares will be priced at C$13.93 on the Toronto Stock Exchange and $13.88 on the New York Stock Exchange.
Ivanhoe said the price represented a 44 percent and 43 percent discount respectively on the average closing price on the TSX and NYSE over the five trading days prior to Dec 16.
The company said it expects to issue 85 million common shares through the offering, about 15 percent of Ivanhoe's current outstanding shares.
Rio Tinto (RIO.AX) (RIO.AX) is the largest shareholder in the Vancouver-based company, which is led by mining financier and colorful dealmaker Robert Friedland.
Rio recently increased its stake to 40.5 percent, with a payment of $300 million in a partial exercise of Ivanhoe Series B warrants, along with the purchase of shares from Friedland.
Rio Tinto is expected to increase its interest in Ivanhoe Mines to 42.3 percent through a previously announced deal to buy Citibanks shares.
Friedland owns 15.3 percent of the company, but could increase his stake through the rights offering.
Oyu Tolgoi is one of the world's biggest untapped copper-gold deposits. Development was delayed for years due to complicated royalty negotiations between Ivanhoe and the Mongolian government. [ID:nSP495396]
The project is 34 percent owned by Mongolia and 66 percent owned by Ivanhoe.
Shares were up 2.25 percent at C$25.01 on Friday on the Toronto Stock Exchange. (Reporting by Julie Gordon)
* Shares priced at C$13.93 on TSX, $13.88 on NYSE
* Shares up 2.25 percent at C$25.01 on TSX (In U.S. dollars unless noted)
TORONTO, Dec 17 (Reuters) - Ivanhoe Mines (IVN.TO) said on Friday it would raise up $1.2 billion in a strategic rights offering to fund the development of the first phase of its massive Oyu Tolgoi copper and gold project in southern Mongolia.
The rights offering is structured so that every 100 rights can be exchanged for 15 common shares in the company.
The shares will be priced at C$13.93 on the Toronto Stock Exchange and $13.88 on the New York Stock Exchange.
Ivanhoe said the price represented a 44 percent and 43 percent discount respectively on the average closing price on the TSX and NYSE over the five trading days prior to Dec 16.
The company said it expects to issue 85 million common shares through the offering, about 15 percent of Ivanhoe's current outstanding shares.
Rio Tinto (RIO.AX) (RIO.AX) is the largest shareholder in the Vancouver-based company, which is led by mining financier and colorful dealmaker Robert Friedland.
Rio recently increased its stake to 40.5 percent, with a payment of $300 million in a partial exercise of Ivanhoe Series B warrants, along with the purchase of shares from Friedland.
Rio Tinto is expected to increase its interest in Ivanhoe Mines to 42.3 percent through a previously announced deal to buy Citibanks shares.
Friedland owns 15.3 percent of the company, but could increase his stake through the rights offering.
Oyu Tolgoi is one of the world's biggest untapped copper-gold deposits. Development was delayed for years due to complicated royalty negotiations between Ivanhoe and the Mongolian government. [ID:nSP495396]
The project is 34 percent owned by Mongolia and 66 percent owned by Ivanhoe.
Shares were up 2.25 percent at C$25.01 on Friday on the Toronto Stock Exchange. (Reporting by Julie Gordon)
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