[miningmx.com] – IVANHOE Mines plans to raise between C$100m and C$108m in a share issue the proceeds of which will be put towards the continued development of the Toronto firm’s base metal projects in the Democratic Republic of Congo (DRC).
Ivanhoe Mines executive chairman, Robert Friedland, said in an announcement that discussions were already underway with a combination of private and state-owned companies for the placement which could pave the way towards a “… significant strategic corporate partnership or syndicate”.
Between 50 million and 54 million shares will be issued at C$2/share. Friedland will subscribe for $25m of the offering reflecting his proportionate holding in the company.
“The proceeds of the offering will advance the development of the company’s Kamoa copper discovery and the Kipushi zinc-copper-lead-germanium-precious metals project, and for general corporate purposes,” Ivanhoe Mines said in its statement.
“Ongoing talks could lead to the formation of a significant strategic corporate partnership or syndicate for continued exploration and development of the company’s discoveries and associated infrastructure,” said Lars-Eric Johansson, CEO of Ivanhoe Mines.
Friedland said in April that the company required $2bn to develop Kamoa and that it intended improving the mining rate of the project to 7.5 million tonnes a year (mtpa) from 5mtpa previously which would have yielded 143,000 tonnes of copper annually. Eventually, Kamoa could operate at a total capacity of 20mtpa.
