Ivanhoe Energy has raised C$125 million through the private placement of Special Warrants that was announced on January 13, 2010. The issue was increased from the original announcement of up to C$100 million due to strong interest from institutional investors, including numerous top-tier North American institutions and a strategic investment from a significant sovereign wealth fund.
Ivanhoe Energy has closed C$110 million of the C$125 million of subscriptions received and accepted. The C$15 million balance is expected to close in the next few days once funds are received from overseas. An additional C$25 million of Special Warrants are currently under option and may be issued, in whole or in part, on or before February 24, 2010. If all of these additional Special Warrants are issued, the total proceeds of the private placement will be C$150 million.
Each Special Warrant was issued at a price of C$3.00 and entitles the holder to receive, upon exercise, one Common Share and one quarter (0.25) of one Common Share Purchase Warrant. Each whole Purchase Warrant entitles the holder to acquire one Common Share of Ivanhoe Energy at an exercise price of C$3.16 on or before the first anniversary of the closing date.
Ivanhoe Energy plans to use the proceeds from this offering to complete delineation drilling at the Tamarack Project in the Athabasca region in Western Canada, for drilling operations in the Pungarayacu Project in Ecuador and for general corporate purposes. Ivanhoe Energy expects to be in a position to provide an update on Tamarack and on its first appraisal well in Ecuador in the near future.
The securities offered will not be or have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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