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Ivanhoe Australia Limited (ASX:IVA) plans to raise $180 million from shareholders and use $150 million towards mining projects and pay down $30 million in debt.
Canadian parent Ivanhoe Mines will acquire $92 million worth of shares, reducing its holding in the Australian company to 59 per cent from 62 per cent.
The net $150 million will be used to bring its Osborne copper-gold project into first production and fund development of its Merlin project.
Some funds would also be used for other exploration activities.
For the half year ended June 30, 2011, Ivanhoe Australia reported a net loss of $16.6 million.
