Ivanhoe Australia Completes A$125 Million IPO
Tuesday, August 5th 2008
Ivanhoe Mines Executive Chairman Robert Friedland today announced the successful completion of subsidiary Ivanhoe Australia’s A$125 million initial public offering.
Ivanhoe Australia, which remains 80%-owned by Canada-based parent Ivanhoe Mines, will begin trading on the Australian Stock Exchange tomorrow (August 6) under the symbol IVA.
The Ivanhoe Australia IPO, which closed August 1, sold 62.5 million shares at A$2 each. The company’s initial market capitalization is A$625 million. Ivanhoe Australia previously was 100%-owned by Ivanhoe Mines.
The offering, which was heavily supported by investors in Australia, the United States, Canada and Asia, has raised capital for the ongoing exploration and development of Ivanhoe Australia’s extensive tenements that cover 2,250 square kilometres in the Mount Isa-Cloncurry mineral district in northwest Queensland – one of the world’s richest mineral-producing regions.
Ivanhoe Australia’s current focus is on the preparation of development studies for its iron-oxide copper-gold (IOCG) discoveries at three key projects: Mount Elliott, Mount Dore and the Starra Line. A high-grade IOCG zone has been delineated at the Mount Elliott Project within a major, bulk-minable copper-gold system. An infill-drilling program at the Mount Dore project is delineating a large oxide-copper resource suitable for heap-leach, solvent extraction-electrowinning processing – as well as testing deeper, polymetallic and copper-gold sulfide mineralization. Re-evaluation of the previous copper-gold mines on the Starra Line is underway. Independent, 43-101-compliant estimates of the mineral resources identified to date at the three projects are expected to be completed in the near future. Significant uranium potential also has been identified in the company’s northern and central tenements, consistent with the results of previous operators, including Rio Tinto.
“With the majority of the proceeds from the initial public offering earmarked for exploration and development over the next two years, Ivanhoe Australia now has the dedicated financial resources it requires to move on with the discovery and development assessment processes and to expand its deep-drilling exploration program to probe beyond the limits of previously discovered resources,” Mr. Friedland said.
Mr. Friedland, who also is Chairman of Ivanhoe Australia, said investors were enthusiastic about the company’s potential to become a significant copper, gold and uranium producer in a district that also has significant additional potential for zinc, silver and cobalt. “The Mount Isa-Cloncurry district of Queensland is one of the great mineral storehouses of the world and will become one of the most important suppliers to China’s emergence as the world’s fastest growing manufacturing hub.”
Ivanhoe Mines will receive a total of A$38.4 million from Ivanhoe Australia as partial repayment of an inter-company loan and full repayment of a loan to acquire shares in Exco Resources. Ivanhoe Australia currently owns 19.9% of Exco, an Australian company that holds exploration tenements in the Cloncurry district totalling 4,100 square kilometres – including 560 square kilometres that are covered by an 80% earn-in joint-venture agreement with Ivanhoe Australia.
Ivanhoe Mines shares are listed on the Toronto, New York and NASDAQ stock exchanges under the symbol IVN.
