By Laura Lutz
Des Moines, Sept. 11 - Ivanhoe Mines Ltd. arranged a $350 million non-revolving convertible credit facility with Rio Tinto, Ivanhoe's strategic partner in the Oyu Tolgoi copper-gold project in Mongolia.
The credit facility will bear interest at Libor plus 330 basis points per year, payable quarterly. It matures on Sept. 12, 2010.
The principal amount of the debt will be convertible into common stock at $10.00 per share.
Proceeds will be used to maintain ongoing mine development at the project while Ivanhoe and Rio Tinto negotiate for the satisfactory conclusion of an investment agreement between Ivanhoe and the Mongolian government, according to an Ivanhoe news release.
If there is no satisfactory conclusion of the agreement, the company said it will use the proceeds to implement a suspension plan for the cessation of operations at the project.
Ivanhoe is a mining company based in Singapore.
| Issuer: | Ivanhoe Mines Ltd.
|
| Issue: | Convertible credit facility
|
| Amount: | $350 million
|
| Maturity: | Sept. 12, 2010
|
| Coupon: | Libor plus 330 bps
|
| Price: | Par
|
| Conversion price: | $10.00
|
| Investor: | Rio Tinto
|
| Announcement date: | Sept. 11
|
| Stock symbol: | NYSE: IVN
|
| Stock price: | $10.57 at close Sept. 11
|
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