INOVA RESOURCES LTD 
By 31 August 2012
Sale of Exco Limited Shares
Ivanhoe Australia Limited (IVA: ASX/TSX), (Ivanhoe) announced
to the ASX on 23 August
2012 the sale of some of its shares in Exco Resources Ltd
(Exco) to Washington H. Soul Pattinson & Company Limited
(Soul Pattinson) for a consideration of $4.61m ($0.19 per
share).
In a release to the ASX on 28 August 2012, Exco made two
statements regarding this sale that Ivanhoe would like to
correct. Ivanhoe did engage with Exco management regarding
our decision to exit our investment in Exco. We talked with a
number of parties introduced by Exco management that
expressed an interest in purchasing our Exco investment. The
highest price offered for our investment from these parties
was substantially lower than the Soul Pattinson offer. The
offer from Soul Pattinson of $0.19c per share was accepted to
optimise the value of the investment for our shareholders as
our Exco shareholding is not considered to be core
business.
Ivanhoe is not experiencing any financial difficulties and we
did not complete the sale in order to secure funding for the
Merlin Molybdenium & Rhenium project. Ivanhoe announced on 16
August 2012 that we are completing further metallurgical
testwork on the Merlin project which we are expecting will
reduce the estimated capital cost. As a result we are not
currently seeking funding for this project.
We have rationalised our costs and we are preparing to ship
our second concentrate parcel of approximately 10,500wmt
which has already been sold and we currently have
8,000t of concentrate ready to move to port for our third
shipment of between 10,000 -
11,000wmt. Our production is ahead of schedule and we will be
updating the market in our next quarterly report.
IVA0077MR -Sale of EXCO Shares.docx Page 1 of 1
|
distributed by
|
