Ivanhoe Australia Looks to Raise $269 Million for Expansion and Debt Repayment

By Joel ScanlonAug 10 2010

Ivanhoe Australia (ASX:IVA) is planning to raise up to $269 million for the acquisition of a project to be developed in Queensland and to repay current debt.

Ivanhoe plans to do so by announcing a capital raising which should fetch $123 million and a further $38 million through an institutional placement. Planning for the development of four separate projects is underway on projects containing molybdenum, rhenium, copper, gold, zinc, silver and uranium.

The company has been place into a pre-market trading halt. Ivanhoe Australia is owned 80% by the Canadian company Ivanhoe Mines which is chaired by Robert Friedland. The institutional and retail offers will be conducted via a one for four non-renounceable entitlement offer at $2.88. This is lower by 10.28 % compared to Ivanhoe's last traded price of $3.21.

Ivanhoe Mines has said that it will not take up its entitlements and will have its holdings reduced to 65% in Ivanhoe Australia. UBS and Morgan Stanley are underwriters, joint lead managers and bookrunners for the raising. The announcement about the institutional component of the offer will be made before Thursday.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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