Last November I authored an article, "Mongolia, In Partnership With Ivanhoe Mines And Rio Tinto" on Ivanhoe Mines (IVN), Rio Tinto (RIO) and the Oyu Tolgoi copper mining project that is under development in Mongolia. Ivanhoe Mines, with Rio Tinto now its majority shareholder, is raising capital and giving existing shareholders rights to purchase additional shares.
Today, June 14, 2012 is the day that trading starts in Ivanhoe rights.
The offering was announced on June 8, 2012. Shareholders who do not wish to exercise their rights to buy new common shares under the offering will have the option of selling the rights that they receive from Ivanhoe Mines through the TSX, the NYSE or NASDAQ. The purpose of this offering is to gain additional funding for the continuing project at Oyu Tolgoi in Mongolia. Each current shareholder will get 7 rights per 20 shares to purchase additional shares at $7.00, which is approximately a 32% discount from the share price at closing of $10.35 on June 13, 2012.
Shareholders should either sell or exercise their rights. On the NYSE the rights may be traded under the symbol IVN RT WI. Trading of the rights will stop at the close of trading on July 18, 2012. Shareholders who do not exercise their rights will have their existing shares diluted by the issue of approximately 260 million new common shares.
Ivanhoe's partner in the Mongolian project, Rio Tinto , purchased a majority (51%) of Ivanhoe's shares last December and they are fully subscribed to this offering.
A full description containing details of the offering is found in pdf format at this linked news release.
For information beyond that found on the Ivanhoe web-site, investors may contact:
Phone: +1 604.648.3920
Vancouver, B.C. based Ivanhoe Mines is an international mining company with operations focused in the Asia Pacific region. Assets include the company's interest in the Oyu Tolgoi copper-gold-silver mine development project in southern Mongolia, an interest in Mongolian coal miner South Gobi Resources as well as interests in mines and exploration in Australia and Kazakhstan.
Disclosure: I am long IVN, RIO.