Ivanhoe Mines Completes Sale of Controlling Stake in Jinshan Gold Mines to China National Gold Group
05/13 4:05 am (CNCN)
Story 3110 (IVN)
BEIJING, CHINA--(Marketwire - May 13, 2008) - Ivanhoe Mines' (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) Executive Chairman Robert Friedland announced today that the company has completed the previously announced sale of its 42% control block in China gold producer Jinshan Gold Mines to a wholly-owned subsidiary of China's national gold-mining conglomerate, China National Gold Group, of Beijing. Under terms of the agreement, the purchaser has acquired from Ivanhoe Mines: - Ivanhoe's entire holding of 67,520,060 common shares of Jinshan Gold Mines, at a price of C$3.1115 a share; and - a Jinshan promissory note of C$7.5 million issued to Ivanhoe Mines, due June 26, 2010, together with accrued interest at 12% from March 31, 2008. Ivanhoe will retain warrants to purchase up to 1.5 million common shares of Jinshan, each exercisable to purchase one Jinshan common share at C$2.50 at any time up to June 26, 2009. The aggregate proceeds from the sale received by Ivanhoe Mines are C$217.7 million. Ivanhoe Mines will record a gain on the sale of its interest in Jinshan in the second quarter. Complete details of the transaction can be found in Ivanhoe Mines' news release of April 10, 2008.