Ivanhoe Australia to raise $80 million
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Copper and gold miner Ivanhoe Australia is to tap investors for $80 million to help repay a loan and fund infrastructure and exploration projects.
The Rio Tinto-controlled miner on Wednesday announced a three-for-10 renounceable rights issue at 48 cents a share.
Ivanhoe's major shareholder Turquoise Hill, which is half owned by Rio, has agreed to take part, providing $40 million towards the capital raising.
On completion of the offer, Turquoise Hill's stake in Ivanhoe will dip slightly from 58.7 per cent to 57.7 per cent.
Ivanhoe's chief executive Ines Scotland said the capital raising will allow the company to pay off a loan from Turquoise Hill and cover exploration and other costs.
"The entitlement offer will strengthen Ivanhoe Australia's balance sheet and, together with operating cash flows from the Osborne project, ensure that the company is fully-funded for planned operations and exploration," he said.
Ivanhoe's shares were placed in a trading halt ahead of the announcement.