Ivanhoe Mines (IVN-T) has completed an offering of 5 million shares at US$1 apiece for proceeds of US$5 million. Haywood Securities was the lead agent for the financing.
That brings the total funds raised since mid-August by the Robert Friedland-led company to US$10.25 million. The money will be used, in part, to fund ongoing exploration at the company’s Turquoise Hill (Oyu Tolgoi) copper-gold porphyry project in southern Mongolia and at its high-grade gold discoveries in Myanmar and South Korea.
Ivanhoe is currently in the midst of a 16,000-metre drilling campaign on the 238-sq.-km Turquoise Hill project. The company believes the entire porphyry system has the potential to host more than 1 billion tonnes of copper, gold and molybdenum mineralization. Half of this may be contained at Southwest Oyu alone.
In early September, two step-out holes confirmed the results from hole 150, Ivanhoe’s first deep diamond hole to test Southwest Oyu. Hole 150 sank to 590 metres and averaged 1.17 grams gold per tonne and 0.81% copper over 508 metres, from 70 metres below surface.
Hole 160, collared 120 metres up-dip of hole 150, averaged 1.68 grams gold per tonne and 0.8% copper over 288 metres, from 46 metres below surface. Hole 161, 150 metres east-northeast of hole 150, returned 358 metres (from 56 m) of 1.7 grams gold 0.71% copper.
Ivanhoe can earn a 100% interest in the project by spending US$6 million on exploration over seven years and paying US$5 million to BHP-Billiton (BHP-N). The major retains a back-in right, which, if not exercised, automatically converts to a 2% net smelter return.
Be the first to comment on "Ivanhoe raises $5 million"