The institutional component of the Entitlement Offer was completed on November 23, 2012, raising gross proceeds of approximately A$74.7 million from the issue of approximately 155.7 million ordinary shares at A$0.48 per share. the Company was supportive of the Entitlement Offer and subscribed for A$40 million. the institutional component of the Entitlement Offer, excluding the Company's participation, was underwritten.
The retail component of the Entitlement Offer was completed on December 19, 2012, raising gross proceeds of approximately A$0.8 million from the issue of approximately 1.7 million shares at A$0.48 per share.
In total, gross proceeds of approximately A$75.5 million were raised via the Entitlement Offer. Net proceeds, as well as operating cash flows, are intended to be used to repay and terminate the working capital facility provided by the Company in August 2012 (see below); fund infrastructure at, and completion of, the Starra 276 mine ramp-up; provide a special exploration and development reserve; fund working capital and provide funds for general corporate purposes.
In February 2013, Ivanhoe Australia successfully placed the shortfall from the 2012 Entitlement Offer. the shortfall shares from the placement were issued at the Entitlement Offer price of A$0.48 per share. Ivanhoe Australia issued approximately 9.3 million shares and received proceeds of approximately A$4.5 million. as a result of the shortfall placement, Turquoise Hill's ownership in Ivanhoe Australia was reduced from 57.3% to 56.5%
Working capital facility
In Q3'12, the Company provided a secured, twelve-month working capital facility to Ivanhoe Australia of up to $50 million. in August 2012, Ivanhoe Australia drew down $20 million from the facility and a further $11 million was drawn in October 2012.
Outstanding amounts drawn under the working capital facility were repaid during Q4'12 and the facility was terminated.
Sale of Exco Resources shares
On August 23, 2012, Ivanhoe Australia announced the sale of approximately 24.3 million shares of its holding in Exco Resources Ltd. (Exco) to Washington H. Soul Pattinson & Company Limited (WHSP) for cash consideration of approximately A$4.6 million (A$0.19 per share).
Ivanhoe Australia had also advised WHSP that it intended to accept WHSP's revised takeover offer of A$0.265 per share for its remaining 55.0 million Exco shares, in the absence of a superior offer.
On November 12, 2012, WHSP advised Exco shareholders that it had accumulated a 90% interest in Exco and would proceed with a compulsory acquisition of the remaining shares in Exco. Ivanhoe Australia received cash consideration of approximately A$14.6 million from the sale of its remaining 55.0 million shares in Exco. WHSP announced that it had completed compulsory acquisition of Exco on December 28, 2012.
New managing Director and CEO
Bob Vassie was appointed as Managing Director and CEO on January 14, 2013. Mr Vassie replaced Ines Scotland who stepped into the role in June 2012 on an interim basis.
KYZYL GOLD PROJECT
Altynalmas, a private company, holds 100% ownership of the Kyzyl Gold Project in northeastern Kazakhstan. the Kyzyl Gold Project contains the Bakyrchik and Bolshevik gold deposits, as well as a number of satellite deposits.
Turquoise Hill owns 50.0% of Altynalmas at March 25, 2013 (December 31, 2012: 50.0%).
Binding agreement signed for sale of stake in Altynalmas
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