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Ivanhoe Mines (TSX:IVN - News; NYSE:IVN - News; NASDAQ:IVN - News) today reminded eligible
shareholders that the company's current rights offering will expire in eight
days, on January 26, 2011.
Under terms of the rights offering, all
holders of rights must either a) validly deliver their completed rights
certificates to the Subscription Agent, CIBC Mellon Trust Company, before the
expiry deadline on January 26, 2011, at 5:00 p.m. Eastern Standard Time
(EST); or b) provide a notice to the Subscription Agent guaranteeing delivery
of their rights certificates within three business days of the January 26
expiry deadline (which will be January 31, 2011), in both cases accompanied
by payment of the total applicable subscription price.
An earlier deadline will apply for
rights held through securities brokers, dealers, banks, trust companies or
other custodians that participate directly or indirectly in the book-based
systems administered by CDS Clearing and Depository Services Inc. or the
Depository Trust Company. Holders of such rights should contact their broker,
dealer, bank, trust company or other custodian to determine the deadlines
applicable to them.
Details of the rights offering are
contained in the final prospectus, notices and the rights certificate that
were mailed to each registered shareholder resident in Canada and the United
States on January 5, 2011. The final prospectus, dated December 16, 2010, and
the notices are available on SEDAR, EDGAR and the Ivanhoe Mines website
(www.ivanhoemines.com).
Key terms of the rights offering
include:
-- Ivanhoe Mines has issued, at no charge, to holders of its common stock
as of the close of business on December 31, 2010, rights to subscribe to
additional shares of Ivanhoe Mines' common stock at a subscription price
of either US$13.88 per share or CDN$13.93 per share.
-- Every 100 rights allow the holder to purchase 15 common shares of
Ivanhoe Mines. Every 20 rights, for example, entitle the holder to
purchase three common shares.
-- Shareholders who do not wish to exercise their rights to subscribe to
new common shares under the offering have the option of selling their
rights through the Toronto Stock Exchange (TSX), the New York Stock
Exchange (NYSE) and NASDAQ.
-- The rights are trading on the TSX under the symbol "IVN.RT", on the NYSE
under the symbol "IVN RT" and on NASDAQ under the symbol "IVN.R".
-- Trading of the rights on the NYSE and NASDAQ will stop at the close of
trading on January 25, 2011. Trading of the rights on the TSX will stop
at noon EST on January 26, 2011.
-- The rights offering will expire at 5:00 p.m. EST on January 26, 2011.
Rights not exercised prior to the expiry time will be void and of no
value.
-- Shareholders who do not exercise all of their rights will have their
present ownership interests in Ivanhoe Mines reduced, as a percentage of
the total outstanding common shares, as a result of the rights offering.
-- The rights offering is scheduled to close on February 2, 2011.
-- Approximately 85 million common shares are expected to be issued under
the rights offering, which would represent approximately 15.0% of
Ivanhoe Mines' outstanding shares as of the December 31, 2010, record
date.
Shareholders who have received a rights
certificate and wish to exercise their subscription rights should follow the
instructions included on the back of the rights certificates and in the
notices to Canadian and U.S. registered shareholders. Rights must be
exercised at the office of CIBC Mellon Trust Company, 199 Bay Street,
Commerce Court West, Securities Level, Toronto, Ontario, Canada, M5L 1G9,
before 5:00 p.m. EST on January 26, 2011.
Owners of Ivanhoe Mines' shares held in
brokerage accounts who wish to exercise their subscription rights should
follow instructions from their brokers. Those wishing to participate in the
rights offering who have not heard from their brokers should deal with their
brokers or contact CIBC Mellon Trust Company by telephoning 1-800-387-0825
toll free (in North America), 1-416-643-5500 (if calling from outside North
America) or emailing inquiries@cibcmellon.com.
The rights and the underlying common
shares have not been qualified under the securities laws of any jurisdiction
other than Canada and the United States. Shareholders residing outside Canada
and the United States may not be eligible to participate in the rights
offering by exercising rights.
Registered shareholders resident outside
of Canada and the United States were required to satisfy Ivanhoe Mines of
their eligibility -- and, if applicable, the eligibility of each beneficial
shareholder for whom they may be acting -- to participate in the rights
offering on or before 4:30 p.m. EST on January 14, 2011. For shareholders who
failed to confirm their eligibility, CIBC Mellon will attempt, on a best
efforts basis, to sell their rights at such prices and in such markets as CIBC
Mellon determines in its sole discretion. In each case, CIBC Mellon will
convert, or cause to be converted, any proceeds denominated in Canadian
dollars into US dollars at the prevailing exchange rate on the date of
distribution and, net of any expenses incurred by CIBC Mellon in connection
with such conversion, distribute all proceeds in US dollars to non-qualified
holders on a pro rata basis. CIBC Mellon will mail cheques representing the
net proceeds, without interest, from such sales. For holders residing outside
Canada and the United States and holding rights through a securities broker,
dealer, bank, trust company or other custodian, their securities broker,
dealer, bank, trust company or other custodian may consider selling any
rights for the benefit of those holders - to the extent permitted under
arrangements with those holders and applicable law - and to remit the net
proceeds to those holders' accounts.
This news release does not constitute an
offer to sell, or the solicitation of an offer to buy, any securities; nor
shall there be any sale of these securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state or
jurisdiction.
About Ivanhoe Mines
(www.ivanhoemines.com)
Ivanhoe Mines (NYSE:IVN - News; NASDAQ:IVN - News; TSX:IVN - News) is an international mining
company with operations focused in the Asia Pacific region. Assets include
the company's 66% interest in the world-scale, Oyu Tolgoi copper-gold mine
development project in southern Mongolia; its 57% interest in Mongolian coal
miner SouthGobi Resources (TSX:SGQ - News; SEHK:1878 - News); a 62% interest in
Ivanhoe Australia (TSX:IVA
- News; ASX:IVA - News), a
copper-gold-uranium-molybdenum-rhenium exploration and development company;
and a 50% interest in Altynalmas Gold Ltd., a private company developing the
Kyzyl Gold Project in Kazakhstan.
Forward-looking statements
Certain statements made herein,
including statements relating to matters that are not historical facts and
statements of our beliefs, intentions and expectations about developments,
results and events which will or may occur in the future, constitute "forward-looking
information" within the meaning of applicable Canadian securities
legislation and "forward-looking statements" within the meaning of
the "safe harbour" provisions of the United States Private
Securities Litigation Reform Act of 1995. Forward-looking information and
statements are typically identified by words such as "anticipate",
"could", "should", "expect", "seek",
"may", "intend", "likely", "plan", "estimate",
"will", "believe" and similar expressions suggesting
future outcomes or statements regarding an outlook. These include, but are
not limited to, whether or not the above contemplated rights offering will be
successfully completed in the future and other statements that are not
historical facts.
All such forward-looking information and
statements are based on certain assumptions and analyses made by Ivanhoe
Mines' management in light of their experience and perception of historical
trends, current conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances. These
statements, however, are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ materially
from those projected in the forward-looking information or statements.
Important factors that could cause actual results to differ from these
forward-looking statements include those described under the heading
"Risk Factors" included in the rights offering prospectus or in the
Company's Annual Information Form, which are filed on Sedar and EDGAR. The
reader is cautioned not to place undue reliance on forward-looking
information or statements.
The issuer has filed a registration
statement (including a prospectus) with the SEC for the rights offering to
which this communication relates. Before investing, individuals should read
the prospectus in that registration statement and other documents the issuer
has filed with the SEC for more complete information about the issuer and the
rights offering. The documents are available free of charge by visiting EDGAR
on the SEC website at www.sec.gov.
Alternatively, the issuer or dealer managers participating in the rights
offering will arrange to send you the prospectus if you request it by calling
toll-free 1-877-858-5407.
Contact:
Bill Trenaman
Ivanhoe Mines Ltd.
Investors
+1.604.688.5755 |
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