CORRECTED-UPDATE 2-Ivanhoe says needs funds to advance Congo projects this year

Fri May 16, 2014 10:51am EDT
 
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(Corrects spelling of analyst's name in paragraphs 6 and 9 to Terentiew from Terenview. Incorporates earlier corrections.)

* 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

By Anannya Pramanick

May 15 (Reuters) - Canada's Ivanhoe Mines Ltd said it would not be able to advance development of two mines in the Democratic Republic of Congo this year unless it gets more funds by the end of the second quarter, sending its shares down as much as 7 percent in early trading.

Ivanhoe, which does not have any producing mines, 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.   Continued...