Elisabeth Behrmann | September 23, 2009 Article from: Dow Jones Newswires.
IVANHOE Mines said it is fielding investment proposals from several sovereign wealth funds for a stake of up to 9.9 per cent in the miner.
Canada-based Ivanhoe, which is expecting to sign a long-awaited investment agreement for its giant $US3 billion Oyu Tolgoi copper-gold project in Mongolia soon, has agreed to cooperate with existing 9.95 per cent shareholder Rio Tinto in considering potential investments.
Ivanhoe chief executive John Macken said several sovereign wealth funds are among potential investors who have expressed unsolicited interest in the company. Rio, which may raise its stake in Ivanhoe to a maximum of 46.65 per cent for about $US2.4bn, has agreed not to exercise its right of first offer for third-party equity financing.
Ivanhoe has been waiting to sign an investment deal for the mine, seen as a framework for future resources development in Mongolia, since late August, when parliament abolished a windfall tax on copper and gold profits.
Rio is due to complete a second investment tranche in Ivanhoe by October 27, but the companies have agreed on a month-on-month extension in light of the approaching deadline.
Rio took its initial stake in 2006 for $US303m.
Ivanhoe shareholders are due to vote on the proposal October 20.
