Ivanhoe bolsters coffer with $140 million financing

Vancouver – Ivanhoe Mines (IVN-T) has successfully closed an equity financing for $140 million, consisting of 20 million shares at $7.00 per share.

The bought-deal financing was increased from a previously announced $75 million. Underwriters for the offering elected to exercise their option to purchase the additional shares.

The underwriters (GMP Securities and BMO Nesbitt Burns) also have a greenshoe option, allowing them to purchase an additional 15% of the offering (3 million shares at the $7 per share price) for 30 days from the closing.

A short-form prospectus was filed by Ivanhoe in conjunction with the financing, clearing the securities for resale and distribution in Canada.

Funds will primarily be allocated for continued exploration of the company’s flagship Oyu Tolgoi project in southern Mongolia (including resource definition drilling, engineering and feasibility study activities).