UPDATE 1-Ivanhoe to raise C$150 mln in equity for Congo mines

Tue May 20, 2014 4:36pm EDT
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(Adds details on offering, context)

May 20 (Reuters) - Ivanhoe Mines Ltd said on Tuesday it has entered into agreements to raise C$150 million ($137.65 million) in a share and warrants offering. The funds would be used to develop its mining projects in the Democratic Republic of Congo.

The fundraising comes after Ivanhoe said last week that it would not be able to advance development at its Kamoa copper discovery and Kipushi zinc and copper mine in the Congo without new funding.

Ivanhoe said C$125 million of the funds would come from a bought deal with a syndicate of investment banks. The remaining C$25 million would be raised in a private placement with Robert Friedland, Ivanhoe's founder and chairman.

The underwriters, led by BMO Capital Markets, CIBC and Macquarie Capital Markets Canada, have agreed to buy 88.3 million Ivanhoe units at a price of C$1.50 a unit. Each unit consists of one common share and one share purchase warrant.

Ivanhoe's shares were halted before the news. The stock was last up 1 Canadian cent at C$1.64 on the Toronto Stock Exchange on Tuesday.

The offering is expected to close around June 10.

($1 = 1.0898 Canadian dollars) (Reporting by Nicole Mordant in Vancouver; Editing by Bernard Orr and Eric Walsh)