Ivanhoe eases way for Rio to hold larger stake in OT

Ivanhoe Mines Ltd. has decided to scrap a so-called shareholder rights plan, clearing the way for Rio Tinto Group to increase its stake and gain control of the developer of the Oyu Tolgoi copper mine in Mongolia.Ivanhoe announced on January 18 it will recommend investors vote to end the rights plan at its annual meeting on May 11. Rio has been restricted to holding a 49 percent stake in Ivanhoe by a standstill agreement, which has now expired.

At stake is control of one of the world’s largest untapped copper and gold deposits that Rio estimates will cost about $6 billion to develop. The London-based company has advised Ivanhoe it intends to acquire more shares to raise its stake above 50 percent, regardless of the rights plan, Ivanhoe said.
“Rio’s first step would be to go past 50 percent and that’s the urgency,” said a Sydney analyst. “From a shareholder’s point of view, you’d prefer them not to go hostile so that there’s no risk of overpaying, so the creep aspect is clearly better.”It’s unlikely that a third party will emerge as a rival bidder for Ivanhoe, which has a market value of $14.1 billion.

“We welcome Ivanhoe’s decision to suspend immediately the shareholder rights plan,” Rio said in an e-mailed statement. “We are free to increase our shareholding as we see fit, without triggering the plan.”Founder and Chief Executive Officer Robert Friedland controls about 14 percent of Ivanhoe stock.
The Ivanhoe board has approved a $1.8-billion bridge financing that could be used to complete the first phase of Oyu Tolgoi.Ivanhoe and Rio are working toward arranging as much as $4 billion of financing for the project. Their plan is to complete the financing in the second quarter.

Entree discovers new high-grade gold zone at Shivee West

Entree Gold Inc. has received final results from the recently completed work program on its 100%-owned Shivee West project. Work was conducted over the Zone III near-surface epithermal gold target and expanded north, where a new gold zone (Argo Zone) was discovered 250 metres beyond the previously known area of gold mineralization. Significant results at the Argo Zone included two separate high-grade chip samples averaging 42.4 grams/tonne gold over 4 metres and 19.3 g/t Au over 3 metres.

Greg Crowe, President and CEO of EntrЁ¦e, commented, “This program yielded some very high grades in a new area of mineralization. Potential for additional gold targets is excellent and we are planning further exploration in 2012.” The 2011 work program targeted near-surface epithermal gold mineralization and included 23 vertical holes (2,470 metres) of reverse circulation drilling, 1,120 linear metres of excavator trenching and surface sampling over an area of 200 metres x 600 metres.

Xanadu receives mining licence for Khar Tarvaga coal project

The Mongolian Mineral Authority has granted a mining licence to ASX-listed Xanadu Mines for its Khar Tarvaga coal project. The project covers some 83.5 km2 in the Tov province and the licence has been granted for an initial 30-year term, with an option for two 20-year extensions, providing for a total of 70 years of mining operations.

Xanadu chairperson Brian Thornton noted that the company had completed an extensive technical scoping study as part of its development strategy and to assist in identifying potential developers and end-users for the project. “With the certainty of a 30-year mining licence and Mongolia’s growing annual fuel deficit of more than $800 million, Xanadu will redouble its efforts to engage potential technical and equity partners to develop the project.”

Substantial high-grade iron mineralisation intersected in Haranga’s Selenge Project

Haranga Resources Limited reports that 29 of the 33 drill holes at the Bayantsogt Prospect within the Selenge Iron Ore Project area have intersected significant widths of iron mineralisation. Five major iron lodes have been identified within the large Bayantsogt hill, each averaging approximately 20m, and up to 103m, in width. Metallurgical test work has commenced. The company’ target is to release a maiden JORC Code compliant resource for Bayantsogt by March 2012.


112 mines registered with Mineral Resources Council in 2011

The Mineral Resources Council has said 112 deposit mines containing 14 different minerals were discovered and registered with it in 2011. Of these, 27 contain coal, 23 silver, seven iron ore, and four copper. The others contain uranium, rare metals, nonferrous metals, molybdenum, oil, and zinc. Exploitation has commenced at some of the mines.

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