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

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.

Joel Scanlon

Written by

Joel Scanlon

Joel emigrated to Australia in 1995 and worked for five years in the mining industry as an exploration geotechnician, using GIS mapping and CAD software. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm. After that, he ran a successful business providing web services to businesses along the eastern seaboard of Australia. During this time, he developed and launched News-Medical.Net. Joel has been working with AZoNetwork since the company was founded in 2000.

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