Press Release Dated August 17, 2007
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
From: August 17, 2007
IVANHOE MINES LTD.
(Translation of Registrants Name into English)
Suite 654 999 CANADA PLACE, VANCOUVER, BRITISH COLUMBIA V6C 3E1
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of
Form 20-F or Form 40-F.)
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Form 20-F- o
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Form 40-F- þ |
(Indicate by check mark whether the registrant by furnishing the information contained in this form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.)
(If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82- .)
Enclosed:
Press release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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IVANHOE MINES LTD.
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Date: August 17, 2007 |
By: |
/s/ Beverly A. Bartlett
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BEVERLY A. BARTLETT |
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Vice President & Corporate Secretary |
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August 17, 2007 |
IVANHOE MINES ISSUES CORPORATE UPDATE
SINGAPORE Ivanhoe Mines today provided an update on the status of its cash
holdings having regard to evolving events and uncertainty in global credit markets. Ivanhoes cash
holdings total approximately US$200 million. Of this amount, Ivanhoe has a total of
US$66.5 million in Canadian asset-backed commercial paper (ABCP), representing
approximately 34% of its current cash position. These securities, which meet the criteria of
Ivanhoes investment policy, are rated (by DBRS Ltd.) R1 High. According to
DBRS Ltd., commercial paper rated R1 High is of the highest credit quality, and indicates an
entity possessing unquestioned ability to repay current liabilities as they fall due. The Canadian
ABCP was purchased by Ivanhoe on basis of professional advice from two major international banks.
A portion of Ivanhoes ABCP consists of two Series A notes totalling US$13.8 million
held with Coventree Capital Group Inc. sponsored funds. The two notes, which matured on August 14,
2007, were not paid and remain outstanding. Ivanhoe understands that other recently matured notes
issued by Coventree sponsored funds and held by third parties also remain unpaid. Coventree has
publicly stated that this situation has been caused by a liquidity disruption in the market for
Canadian asset-backed securities. Ivanhoe is investigating the situation and potential solutions
through a number of avenues, including direct discussions with Coventree.
The balance of Ivanhoes Canadian ABCP amounts to a total of US$52.7 million. These notes
have varying maturity dates to September 6, 2007. Until these notes mature, Ivanhoe can not state
with certainty that they will be repaid promptly upon maturity. However, should the current
liquidity disruption in the market for Canadian ABCP remain ongoing when the notes mature, the
repayment of these notes may be delayed for a presently unknown period of time.
DBRS Ltd. continues to confirm the R1 High rating on the Canadian ABCP held by
Ivanhoe. DBRS has placed several issuers of these notes Under Review with Developing Implications
following the announcement on August 16, 2007, that a consortium representing banks, asset
providers and major investors had agreed in principle to take significant steps to re-establish
normal operations in the market for Canadian asset-backed securities. The Bank of Canada has
welcomed the initiative to support the Canadian ABCP market. The Bank of Canada stated that the
agreement by major investors and liquidity providers to pursue an orderly restructuring of the
Canadian market for third-party ABCP provides an opportunity for parties to work through the issues
related to the market for asset-backed securities.
In addition to amounts invested in Canadian ABCP, Ivanhoe has approximately US$130
million held in US T-Bills, bankers acceptances and short-term bank deposits that are available to
fund its operations. Accordingly, Ivanhoe does not believe that any current or anticipated
illiquidity in its Canadian ABCP investments will disrupt its near-term business activities and
operations in respect of its various projects, including the Oyu Tolgoi copper
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and gold mine development project in Mongolia. An update on the current work program at Oyu Tolgoi
and the status of the review of the Oyu Tolgoi Investment Agreement by the Mongolian Parliament was
provided in Ivanhoes news release dated August 10, 2007.
Information contacts:
Investors: Bill Trenaman: +1.604.688.5755 / Media: Bob Williamson: +1.604.688.5755
Forward-Looking Statements: This document includes forward-looking statements.
Forward-looking statements are subject to a variety of risks and uncertainties which could
cause actual events or results to differ from those reflected in the forward-looking statements,
including, without limitation, risks and uncertainties relating to the repayment of Canadian
asset-backed commercial paper held by the company, including those described under Risk Factors
Relating to the Companys Business in the Companys Annual Information Form and in each management
discussion and analysis. Forward-looking information is in addition based on various assumptions
including, without limitation, the expectations and beliefs of management. Should one or more of
these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in forward-looking statements. Accordingly,
readers are advised not to place undue reliance on forward-looking statements.