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Tuesday, September 24, 2013

Ivanhoe Mines Discusses Deal With Chinese Gold Producer

http://online.wsj.com/article/SB10001424052702303983904579093512405948546.html

China's largest gold company, China National Gold Group Corp., has talked to Ivanhoe Mines IVN.T -12.50% about buying a stake in or assets from the company founded by flamboyant mining magnate Robert Friedland, two people familiar with the matter said.
It is unclear where talks stand, but, if completed, such an investment would mark another step into international markets for the Beijing-based miner and further Chinese investment in African mining. It could also entail Mr. Freidland's taking on a major international partner not long after he lost control of a major mining company to London-listed giant, Rio Tinto PLC.
On Monday, Toronto-listed Ivanhoe said it is selling $100 million worth of stock at $2 a share, a sharp discount to Friday's closing price of $2.56. The stock fell 11% as investors digested news of the dilution and analysts said that the total falls short of the money that Ivanhoe needs to raise.
In a release Ivanhoe said that it is in discussions with a number of international, private and state-owned mining companies about raising further funds through investments in its projects and the company.

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