Friday, May 21, 2010

Ivanhoe (TSE:IVN) Oyu Tolgoi Financing Deal

Ivanhoe (TSE:IVN) (NYSE:IVN) is close to securing financing for its Oyu Tolgoi project, one which will bring them into the top tier of mining companies in the world.

On Friday they signed a preliminary agreement with the World Bank Group's International Finance Corp. and the European Bank for Reconstruction and Development.

Each financial institution could provide up to $300 million each to finance the project, while also working to garner another $1.2 billion from commercial lenders.

The package with the two financial institutions would be offered in two stages.

Other financing for the $4.6 billion project could come from export credit agencies, which could bring another $500 million for the project.

Ivanhoe is partners with the Mongolian government, and Rio Tinto (LON:RIO) (ASE:RIO) in the venture.

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