Ivanhoe Australia Limited (ASX:IVA) has secured a working capital facility of up to $US50 million. The mineral developer’s majority shareholder, Ivanhoe Mines Limited (NYSE:IVN, TSE:IVN) will support the company by providing the secured twelve month working capital facility.
The line of credit is expected to provide Ivanhoe Australia with extra funding for working capital as its strategic review process continues.
Ivanhoe Australia says its key objectives are to optimise the value of the Osborne operation and identify the value drivers from its Mt Elliot and Merlin projects and exploration ground.
The review is expected to be finished by September 2012.
In the 2011 financial year Ivanhoe Australia booked a net loss of $126.4 million.
IVA Price at posting:
46.3¢ Sentiment: None Disclosure: Held
