More lenders join group lining up financing for Ivanhoe's Mongolian project
LONDON - Ivanhoe Mines Ltd. (TSX:IVN) has added three more lenders — including Export Development Canada — to a group arranging a debt financing package worth up to $2 billion for the Oyu Tolgoi copper and gold mining project in Mongolia.
The company said Monday that the agreement also includes Paris-based BNP Paribas and London-based Standard Chartered, and marks a key step in the process of securing a financing package for the property.
Previously, both the European Bank for Reconstruction and Development and the International Finance Corp. had agreed to involvement in the project.
Ivanhoe Mines said it expects the financing to close in the first quarter of 2011.
The company holds a two-thirds stake in the Oyu Tolgoi copper-gold mine development project in Mongolia and a 57 per cent interest in Mongolian coal miner SouthGobi Resources (TSX:SGQ).
Under the agreement, the IFC and EBRD could provide as much as US$600 million combined, while Export Development has considered offering as much as US$500 million.
In total, Ivanhoe said it needs about US$4.6 billion to pay for initial capital costs.
The company did not provide details on other lenders, and said that it's in discussions about other financing options for the rest of its capital requirements.
"The five financial institutions have indicated that they are prepared to consider providing limited recourse loans that would total more than US$2 billion," said Ivanhoe's executive chairman Robert Friedland in a release.
This demonstrates "the high level of interest in international financial circles in participating in the project and awareness of its game-changing significance to copper and gold markets."
The company said Monday that the agreement also includes Paris-based BNP Paribas and London-based Standard Chartered, and marks a key step in the process of securing a financing package for the property.
Previously, both the European Bank for Reconstruction and Development and the International Finance Corp. had agreed to involvement in the project.
Ivanhoe Mines said it expects the financing to close in the first quarter of 2011.
The company holds a two-thirds stake in the Oyu Tolgoi copper-gold mine development project in Mongolia and a 57 per cent interest in Mongolian coal miner SouthGobi Resources (TSX:SGQ).
Under the agreement, the IFC and EBRD could provide as much as US$600 million combined, while Export Development has considered offering as much as US$500 million.
In total, Ivanhoe said it needs about US$4.6 billion to pay for initial capital costs.
The company did not provide details on other lenders, and said that it's in discussions about other financing options for the rest of its capital requirements.
"The five financial institutions have indicated that they are prepared to consider providing limited recourse loans that would total more than US$2 billion," said Ivanhoe's executive chairman Robert Friedland in a release.
This demonstrates "the high level of interest in international financial circles in participating in the project and awareness of its game-changing significance to copper and gold markets."
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