Ivanhoe Mines considers break-up, as mining projects face funding crunch

|About: Ivanhoe Mines Ltd. (IVPAF)|By:, SA News Editor

Ivanhoe Mines says (IVPAF +7.2%) it is considering various options including splitting the company’s projects into separate publicly traded entities, asset sales, joint ventures and alternative stock exchange listings.

While Ivanhoe exited Q1 with $170M in cash, it has committed $146M for the Platreef project in South Africa, which leaves very little for development of its Kamoa and Kipushi deposits in the Democratic Republic of Congo.

Ivanhoe wants to begin developing a mine-access decline at Kamoa this year and conduct an underground drilling program at Kipushi, but it lacks funds to do so unless it can raise more by the end of June.