Ivanhoe clarifies its position on Exco Resources Limited?s market release concerning the proposed sale of the Cloncurry Copper Project to Xstrata Copper MELBOURNE, AUSTRALIA ? Ivanhoe Australia Limited (Ivanhoe) (IVA:ASX, IVA:TSX) notes the announcement today by Exco Resources Limited (Exco) in relation to the proposed sale of the Cloncurry Copper Project to Xstrata Copper and the intended capital distribution to shareholders of Exco. Ivanhoe notes, as Exco?s largest shareholder, that the transaction proposed by Exco requires shareholder approval. Although the Managing Director & CEO of Ivanhoe is a non-executive director of Exco, Mr Peter Reeve excused himself from Exco Board deliberations on this transaction 1 . Accordingly, when Exco?s announcement refers to the views of the ?Exco Board? (in particular, the statement on page 1 of Exco?s announcement that ?The Exco Board believes the Proposal is in the best interests of all shareholders and recommends that shareholders approve the Proposal.?) these statements do not necessarily reflect the views and conclusions of Mr Reeve (Ivanhoe?s appointed nominee to the Exco Board) nor Ivanhoe. No assumptions should be made as to how Ivanhoe will vote its 22.8% shareholding in relation to Exco?s proposed transaction.
1 Ivanhoe had previously proposed to both Exco and Xstrata Copper management an alternative transaction, under which Ivanhoe would have acquired a direct interest in parts of Exco's exploration portfolio. Notwithstanding that the value of the interest contemplated would not have been material in the context of Ivanhoe's market capitalisation, Mr Reeve thought it appropriate to excuse himself from the deliberations. Market Release 20 April 2011Ivanhoe is unlikely to decide how it will vote in relation to the proposed sale until it knows the size and timing of the proposed capital distribution. Ivanhoe has communicated its view to Exco management that all after-tax proceeds from the sale of the Cloncurry Copper Project to Xstrata Copper should be returned to Exco shareholders and paid as soon as possible. For more information regarding Ivanhoe Australia, please visit the company website
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