May 23 Ivanhoe Mines , an
affiliate of giant mining company Rio Tinto ,
said on Wednesday it intends to launch a rights offering open to
all its existing shareholders that would raise about $1.8
billion in proceeds.
The rights offering, in which all Ivanhoe shareholders could
participate, is part of a comprehensive financing plan to
continue the development of the Oyu Tolgoi copper-gold project
in Mongolia, the company said.
Anglo-Australian miner Rio Tinto earlier this year acquired
a controlling interest in Vancouver-based Ivanhoe, whose main
asset is the massive Oyu Tolgoi project.
Rio, which owns a 51 percent stake in Ivanhoe, said it plans
to buy the maximum number of shares it is permitted to acquire
under the terms of the rights offering.
(Reporting By Euan Rocha; Editing by Gerald E. McCormick)