News Column

Ivanhoe Mines Completes Bought-Deal Financing and Concurrent Private Placement and Announces Exercise in Full of Over-Allotment Option

June 28, 2014

By a News Reporter-Staff News Editor at Investment Weekly News -- Robert Friedland, Executive Chairman, and Lars-Eric Johansson, Chief Executive Officer of Ivanhoe Mines (TSX:IVN), announced that the company has completed its public offering of 83,334,000 units, each consisting of one Class A common share and one Class A common share purchase warrant, which were sold at a price of C$1.50 per unit for gross proceeds of C$125,001,000.

The offering, announced on May 20, was conducted through a syndicate of underwriters led by BMO Capital Markets, CIBC and Macquarie Capital Market Canada Ltd. In addition, the underwriters exercised their over-allotment option in full, resulting in the company issuing a further 12,500,100 units and increasing the total gross proceeds received by the company to C$143,751,150.

The company also has completed a concurrent private placement to Robert Friedland of an additional 16,666,667 units, on the same terms and conditions as the public offering, to raise additional gross proceeds of C$25,000,001. Mr. Friedland also has 30 days to exercise his option to purchase an additional 2,500,000 units, which became effective as a result of the exercise by the underwriters of their over-allotment option in whole.

The net proceeds of the offering and private placement will be used for the advancement of, and pre-development activities at, the Kamoa and Kipushi Projects in the Democratic Republic of Congo, and for general corporate purposes.

Mr. Friedland beneficially owned 147,966,755 common shares. As a result of the concurrent private placement of 16,666,667 units (or 2.8% of the common shares, before giving effect to the offering and concurrent private placement), Mr. Friedland now beneficially owns 164,633,422 common shares, or 23.6% of the company's outstanding common shares. Should Mr. Friedland exercise his option in full to purchase an additional 2,500,000 common shares (0.35%), and assuming no exercise of any other outstanding warrants or options to acquire common shares, Mr. Friedland then would beneficially own 167,133,422 common shares, or 23.8% (assuming no exercise by him of the 2,500,000 warrants included in his option for 2,500,000 units) of the company's then outstanding common shares. Mr. Friedland has acquired the common shares for investment purposes.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and have not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereunder.

Keywords for this news article include: Production, Manufacturing, Finance and Investment.

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Source: Investment Weekly News

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