The copper miners reportedly needs to repay AU$48.1 ($50m) with the remaining amount to be employed for the completion of the Starra 276 mine at its Osborne copper and gold operation in Queensland State in Australia.
Ivanhoe’s chief executive Ines Scotland said that the entitlement offer would strengthen their balance sheet and together with operating cash flows from the Osborne project, ensure that the company is fully-funded for planned operations and exploration.
Comprising institutional and retail components, the offer’s institutional component will raise approximately A$74m, with the company’s major shareholder Turquoise Hill extending its support with A$40m ($41.47m).
The remainder of the institutional entitlement offer is underwritten, wherein shares that were not purchased by Turquoise Hill will be offered to institutional shareholders and to other eligible institutional investors.
Following the offer’s closure, Turquoise Hill will own 57.7% in Ivanhoe, a drop from the earlier 58.7% stake before the offer.
