Ivanhoe Mines Completes US$1.18 Billion Strategic Rights Offering
|Areas||Corporate Finance and Securities, Mining and Natural Resources, Tax|
Goodmans represented Ivanhoe Mines in connection with its completion of one of the largest rights offerings in Canadian history, raising gross proceeds of US$1.18 billion. The proceeds of the rights offering, together with additional sources of funding secured under a separate agreement between Ivanhoe Mines and Rio Tinto dated December 8, 2010, are being used to advance construction and development of Ivanhoe Mine’s Oyu Tolgoi Copper and Gold Project in southern Mongolia.
Upon closing of the rights offering, Ivanhoe Mines issued a total of 84,867,671 common shares at a price of US$13.88 per Common Share or Cdn$13.93 per Common Share, which represented 99.5% of the maximum number of common shares that were available under the rights offering. Citi was the lead dealer manager for the rights offering and BMO Capital Markets and CIBC were co-dealer managers.