Ivanhoe Australia Ltd (ASX:IVA) has announced it will raise almost $213 million via an entitlement offer.
The company has today gone into a pre-market trading halt because of the accelerated non-renounceable entitlement offer of ordinary shares and options.
Ivanhoe says the trading halt is necessary as it enables the market to be informed, and so allowing the institutional component of the entitlement offer to take place in an orderly fashion.
The miner advises the equity raising price per new share is $2.88 and each option will be exercisable into one new fully paid ordinary share at $3.38.
Ivanhoe says the funds will be used to facilitate mining development plans such as the Osborne acquisition and Merlin Project, partly repaying a debt owed to Ivanhoe's major shareholder, Ivanhoe Mines, and ongoing exploration.
Ivanhoe reported a loss of $52.23 million for the year ended 30 December 2009.
IVA Price at posting:
$3.14 Sentiment: None Disclosure: Held
