Hedge funds slash bullish wagers on gold before war jitters
Speculators have reduced net-long positions by 3.6%.
Ivanhoe Australia (ASX:IVA) seeks to raise AUD$80 million to contribute to repayment of a loan as well as to pay for infrastructure and exploration projects.
Sky News reports that the Rio Tinto-controlled copper and gold miner announced on Wednesday a three-for-10 renounceable rights issue at a price of 48 cents per share.
The company’s key shareholder, Turquoise Hill (TSE:TRQ), is half-owned by Rio Tinto, and has agreed to furnish $40 million for the capital raising.
The debt which Ivanhoe plans to repay using the solicited funds is owed to Turquoise Hill.
Following the capital raising Turquoise Hill’s ownership of Ivanoe will slip from 58.7% to 57.7%.
Ivanhoe CEO Ines Scotland said that “the entitlement will strengthen Ivanhoe Australia’s balance sheet and, together with operating cash flows from the Osborne project, ensure that the company is fully-funded for planned operations and exploration.”
Ivanhoe shares were suspended from trading in the lead up to the announcement.
