Ivanhoe Mines Closes Successful Rights Offering Yielding US$1.8 Billion in Gross Proceeds
Ivanhoe Mines on Friday announced the closing of its recent rights offering, which expired on July 19, 2012, and confirmed the offering generated US$1.8 billion in gross proceeds, which will be used to advance the construction and development of the Oyu Tolgoi Project.
Upon the closing of the offering, Ivanhoe Mines issued a total of 259,558,050 new common shares, which represents 100% of the maximum number of common shares that were available under the rights offering.
Approximately 99.2% of the shares were taken up in the initial subscription of the rights offering with the balance taken up in the secondary subscription. Rio Tinto exercised all of its respective rights and participated in the secondary subscription provision available to all shareholders. Because the offering was over-subscribed, Rio Tinto did not purchase any shares under its standby commitment. As a result of the rights offering, Rio Tinto"s stake in Ivanhoe Mines increased from 50.9% to 51.0%.
Kay Priestly, Chief Executive Officer of Ivanhoe Mines, said, "We are pleased with the strong reception our rights offering received from shareholders and greatly appreciate their support. The proceeds will be used to further the development of the Oyu Tolgoi Project, which will provide far reaching economic benefits to Mongolia. The project continues to make good progress and we look forward to the processing of first ore in the second half of 2012 and the commencement of commercial production in the first half of 2013."
Ivanhoe will distribute new common shares acquired through the rights offering to registered subscribers on or about three business days after the closing of the offering.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
MarketWire
Upon the closing of the offering, Ivanhoe Mines issued a total of 259,558,050 new common shares, which represents 100% of the maximum number of common shares that were available under the rights offering.
Approximately 99.2% of the shares were taken up in the initial subscription of the rights offering with the balance taken up in the secondary subscription. Rio Tinto exercised all of its respective rights and participated in the secondary subscription provision available to all shareholders. Because the offering was over-subscribed, Rio Tinto did not purchase any shares under its standby commitment. As a result of the rights offering, Rio Tinto"s stake in Ivanhoe Mines increased from 50.9% to 51.0%.
Kay Priestly, Chief Executive Officer of Ivanhoe Mines, said, "We are pleased with the strong reception our rights offering received from shareholders and greatly appreciate their support. The proceeds will be used to further the development of the Oyu Tolgoi Project, which will provide far reaching economic benefits to Mongolia. The project continues to make good progress and we look forward to the processing of first ore in the second half of 2012 and the commencement of commercial production in the first half of 2013."
Ivanhoe will distribute new common shares acquired through the rights offering to registered subscribers on or about three business days after the closing of the offering.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
MarketWire
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