Ivanhoe Energy Inc. announced that it is increasing the private placement announced on June 6 to Cdn.$88 million due to significantly increased expressions of interest from institutional investors. The price for the offering has been set at Cdn.$3.00 per special warrant. Ivanhoe Energy announced on June 6 that it was intending to raise up to Cdn.$50 million.
Private placement allocations based on expressions of interest received to date remain subject to completion of formal documentation. The proceeds will be used by Ivanhoe Energy to make the initial payment of Cdn.$30 million required under the company's agreement with Talisman Energy Canada to acquire Talisman's interests in three leases in the Athabasca oil sands region in the Province of Alberta, Canada, which was announced on May 29, 2008. Ivanhoe Energy plans to use the balance of the funds for general working capital purposes and for its planned development activities on the oil sand leases.
Subject to regulatory approval and satisfaction of all conditions precedent, the private placement is expected to close contemporaneously with the closing of the acquisition of the oil sand leases.
The securities offered will not be or have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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