Singapore-based Ivanhoe Mines (IVN-T) has convert the bulk of certain outstanding loans owed by ABM Mining, its wholly owned Australian iron-ore producing subsidiary, into Ivanhoe common shares.
About 94.2% of Ivanhoe’s shareholders approved the merger proposal at a special meeting in mid-December of 2000. Under that deal, loans owed by ABM and its subsidiaries were made convertible into Ivanhoe shares at $1.20 apiece, subject to the issuance of a maximum of about 30.6 million shares. At the time, Ivanhoe’s shares were trading between 89 and 99.
The loans were owed to entities controlled by Robert Friedland, Ivanhoe’s chairman, and were convertible at the lender’s option. Since the maximum number of shares have been issued, about US$5 million in remaining outstanding loans no longer carry the conversion rights.
Following the conversion, Ivanhoe’s total number of shares issued and outstanding has risen to about 171.2 million. Friedland holds about 59% of those shares.
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