Shares of Ivanhoe Mines (TSX: T.IVN, Stock Forum) climbed more than 23% to $7.94 on the Toronto Stock Exchange Thursday, and while the company released no news Wednesday or Thursday, Reuters reported that “strong demand for a $15.2 billion rights issue by partner Rio Tinto…appeared to ease financing concerns for their Oyu Tolgoi copper-gold project in Mongolia.”
Back in May, Ivanhoe Mines said that it and its strategic partner Rio Tinto negotiated a draft investment agreement in February with a new working group appointed by the Mongolian Government, noting that an agreement is required to begin construction of the Oyu Tolgoi copper-gold mining complex.
“The draft Investment Agreement and a companion Shareholders' Agreement was approved in principle by the Cabinet and the National Security Council and was introduced into the State Great Khural, Mongolia's national Parliament, in March. The parliamentary review process is continuing,” the company said at the time.
Stockhouse posters were also busy sharing their thoughts this week on what might be moving the company’s share price, which jumped 20% Wednesday on the NYSE, as the Canadian markets were closed for a holiday.
On Wednesday, obbguy said: “up on heavy volume. positive sign but i'm a little weary about today's action. could be day-traders moving this stock up on speculation IVN/RIO will get an IA. good news on a technical note is the 200 moving day average has stopped declining. this may indicate the share price has found a bottom[sic].”
While craig138 noted: “I doubt it's the IA. Parliament has yet to review the revised proposal. Someone is in the know. Perhaps it's a sale of OT/IVN or Chinalco is buying in. Keeping fingers crossed[sic].”
And on Thursday, marpincan explained:
IVN has always moved ahead of news due to leaks! It looks like it is doing the same thing now. Could be anything from things looking up for the IA to developments in Australia to RF working another deal of some sort. I am leaning towards a breakthrough on the IA looking more promising as they say that necessity is the mother of invention and Mongolia's financial situation and lack of funds amounts to necessity!!!!!!! We should find out real soon. There new president though is a wild card but IMO even many in his own party would turn against him if he scuttled a deal on the IA.
