UPDATE 2-Ivanhoe warns of funding crunch at two mines in Congo
* To spend almost all working capital on South Africa mine
* Q1 net loss $48.8 mln vs $ 42.4 mln year earlier
* Shares fall as much as 7 percent (Adds analyst comments, updates shares)
By Anannya Pramanick
May 15 (Reuters) - Canada's Ivanhoe Mines Ltd said it would not be able to develop two mines in the Democratic Republic of Congo unless it gets more funds by the end of June, sending its shares down as much as 7 percent in early trading.
Ivanhoe, which does not have any producing mine, said it would spend most of its funds on its Platreef mine in South Africa, which is estimated to produce about 785,000 ounces of platinum, palladium, rhodium and gold a year.
The company said it had consolidated working capital of about $149.8 million as of March 31, down from $201.7 million at Dec. 31. It needs about $1.7 billion to bring the mechanized Platreef mine into production.
The company said on Thursday its access to financing was uncertain and that there was no assurance that additional funding would be available to the company in the near future.
"Realistically the only option available at the moment is probably to raise equity," Raymond James analyst Alex Terenview said. Continued...