Winnipeg Free Press / The Canadian Press: Ivanhoe sets price for rights offering, down from price announced in April

Ivanhoe Mines has cut the price for a US$1.8-billion rights offering that it plans to help fund the construction of its Oyu Tolgoi project in Mongolia. The offering will allow shareholders to buy additional shares at a subscription price of US$7 or C$7.17 per share, down from an initial price of US$8.34 when the financing deal was first announced in April. Under the deal, each Ivanhoe Mines shareholder will receive one transferable right for each share of common stock they owned as of June 19. Every 20 rights will entitle the holder to buy seven shares at the offer price. Roughly 260 million shares are expected to be issued under the rights offering, about 35 per cent of Ivanhoe’s current outstanding shares. Rio Tinto, Ivanhoe’s controlling shareholder, has committed to take up all of its shares available and agreed to a standby commitment for any not acquired by the company’s other shareholders. To read the full article, click hereIvanhoe sets price for rights offering, down from price announced in April

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