Ivanhoe Mines turns to Aussies for cash

Ivanhoe Mines (IVN-T) is raising up to $60 million through a private placement financing targeting Australian investors.

The financing consists of up to 20 million special warrants priced at $3 apiece. Each special warrant is exchangeable for one Ivanhoe share at no additional cost. The first $37.5-million tranche has already closed, and the balance is expected to close before year-end. Proceeds will be used to advance the Turquoise Hill copper-gold project in Mongolia to the feasibility stage and to fund ongoing exploration in Asia.

In addition, Ivanhoe is selling its 14% stake in Australian-listed Emperor Mines to Durban Roodepoort Deep of South Africa for A75 per share, generating proceeds of A$11.5 million (or US$6.5 million). The sale is subject to various approvals.