Ivanhoe Mines to Sell Australian Iron Ore Mine to Focus on Development of Mongolian Assets
Vancouver's Ivanhoe Mines Ltd. has entered into an agreement to sell 100% of the Savage River iron ore mine in Australia to a subsidiary of Stemcor Holdings Limited, of London, England. The purchase price consists of two intial payments totaling US$21.5M, plus a series of contingent, escalating-scale annual payments based on the annual Nibrasco/Japanese steel mills pellet price. The escalating-scale payments, to be made over five years, beginning March 2006, could increase the total consideration paid to Ivanhoe to US$170M. Ivanhoe's decision to sell the Savage River Mine is part of the company's plan to rationalize its non-core assets as it focuses on the accelerated shaft sinking and underground development of the Hugo deposit at the company's Oyu Tolgoi copper and gold project in Mongolia.
Information summarized from: Ivanhoe Mines Ltd. Press Release