IVN. As this release illustrates, Friedland plays the big money game like few others in the mining industry. It should be clear enough that he has and is likely to continue to have the full support of the government. A decided plus, compared to say, Argentina. The negatives have been noted on this board. This is a positive.
Ivanhoe buys $50-million (U.S.) in goverment securities
Ivanhoe Mines Ltd IVN
Shares issued 270,797,474 Dec 30 close $10.05
Wed 31 Dec 2003 News Release
Mr. Robert Friedland reports
IVANHOE MINES PURCHASES $50 MILLION IN GOVERNMENT SECURITIES AS PART OF MONGOLIA'S RETIREMENT OF SOVIET-ERA DEBT Ivanhoe Mines has purchased $50-million (U.S.) of treasury bills issued by the government of Mongolia as part of the government's successful effort to entirely retire its substantial Soviet-era debt to the Russian Federation. "This is a very significant step by Mongolia in its transformation to a dynamic, modern economy," Robert Friedland, chairman of Ivanhoe, said. "Ivanhoe was asked by the government if we would be interested in helping with this historic achievement. We are proud that we can fulfill a role that also demonstrates our ongoing commitment to the people of Mongolia to be a responsible corporate citizen supporting the development of this free, democratic and increasingly prosperous country." Mr. Friedland noted that Ivanhoe has invested more than $60-million (U.S.) in its Oyu Tolgoi (Turquoise Hill) copper and gold discovery, and other South Gobi projects during the past 2.5 years. "The government recognizes that we are in the vanguard of private foreign investment in Mongolia. We intend to continue working with the government to attract new investment to Mongolia to develop the Oyu Tolgoi project and, ultimately, to help Mongolians realize what we believe is their country's enormous potential to become one of the world's key copper and gold mining regions." The government securities purchased by Ivanhoe consist of one-year treasury bills denominated in United States dollars, bearing interest at 3 per cent per year and maturing on Dec. 31, 2004. The government issued the treasury bills as part of its successful action to retire, on very favourable terms,
Mongolia's pre-1991 convertible rouble sovereign debt obligations.
Welcoming Ivanhoe's participation, H. E. Chultem Ulaan, finance and economy minister, said in a letter to the company that the settlement of the Russian debt "will contribute enormously to the economic and social development of Mongolia." Ivanhoe recently announced that the Mongolian government had approved the conversion of its Oyu Tolgoi exploration licence to a long-term mining licence, with an initial term of 60 years and the right of a 40-year extension. The company now is in discussions with the Mongolian authorities on a long-term global stability agreement establishing the terms and conditions that will apply to the project during its operational phase. Ivanhoe has a 100-per-cent interest in the Oyu Tolgoi copper and gold project, and holds or controls exploration rights covering approximately
111,000 square kilometres in central and southern Mongolia, where
additional copper and gold discoveries have been made. |
