Vancouver —
The bought-deal financing was increased from a previously announced $75 million. Underwriters GMP Securities and BMO Nesbitt Burns elected to exercise their option to buy the additional shares.
The underwriters also have a “greenshoe” option, allowing them to buy an additional 15% of the offering (3 million shares at the $7-per-share price) for 30 days from the closing.
Ivanhoe filed a short-form prospectus in conjunction with the financing, clearing the way for resale and distribution in Canada. Funds will be used to explore its Oyu Tolgoi project in southern Mongolia.
The company also confirmed that discussions with
In reviewing the copper-gold project, Barrick concluded it did not meet its investment objectives based on the relative percentage of gold in the deposit.
Ivanhoe remains in discussions with several international mining companies, as well as mining and smelting organizations in China, Japan and Korea.
Oyu Tolgoi (also known as Turquoise Hill) is one of the largest copper-gold projects in the world. The total inferred resource of the Hugo Dummett deposit is 1.2 billion tonnes grading 1.29% copper and 0.23 gram gold per tonne, based on a cutoff grade of 0.6% copper-equivalent. The resource contains an estimated 33 billion lbs. copper and 8.6 million oz. gold.
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