SouthGobi Energy Indonesia, Mongolia property deal

2009-01-28 16:35 ET - Property Agreement

The TSX Venture Exchange has accepted for filing a letter agreement dated Dec. 30, 2008, between Ivanhoe Mines Ltd. and SouthGobi Energy Resources Ltd. The company has agreed to sell its interest in metals exploration properties in Indonesia and Mongolia. In consideration the company will receive $3-million cash and a $30-million unsecured non-convertible credit facility for one year at London interbank offered rate (LIBOR) plus 7.5 per cent. The company will also retain the economic equivalent of a 1-per-cent net smelter royalty on the Sulawesi and Kerta projects in Indonesia.

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