The company currently owns 104,807,155 shares of SouthGobi, representing about 57.6% of SouthGobi’s issued and outstanding shares.
Ivanhoe has agreed to tender all of its SouthGobi shares to CHALCO, a subsidiary of Chinalco Aluminum Corporation of China.
It plans to use the proceeds from the sale of its shares in SouthGobi primarily to fund the continued development of its flagship Oyu Tolgoi copper, gold and silver mine in southern Mongolia, which will begin initial production in the third quarter of this year.
Commercial production at the mine is projected to begin in the first half of 2013.
