Ivanhoe raising C$150m in equity for Congo mines

Africa-focused Ivanhoe Mines (TSE:IVN) said Tuesday it has entered into agreements to raise C$150 million ($137.6 million) to develop its base metal projects in the Democratic Republic of Congo.

The share and warrant offer (priced at $1.50 for one of each) comes after announcement last week when Ivanhoe said it is studying a number of options to secure timely funding to advance its Kamoa copper discovery and Kipushi zinc and copper mine in the DRC.

The company founded by billionaire mining financier Robert Friedland, said it would allocate most of its funds to its $1.7 billion Platreef discovery of platinum, palladium, nickel, copper, gold and rhodium, located in in South Africa's Limpopo province.

Reuters reports C$125 million of the funds would come from a bought deal with a syndicate of investment banks, while the remaining C$25 million would be raised in a private placement with Friedland.

Shares in Vancouver-based Ivanhoe was halted ahead of the announcement when it was trading at $1.64 on the Toronto Stock Exchange. The $944 million counter is down 12% year to date.