Ivanhoe Australia gets FIRB’s go ahead on Osborne takeover

July 12, 2010 5:23 AM EDT

Canadian mining firm Ivanhoe Australia Ltd announced on Monday that the Foreign Investment Review Board (FIRB) has granted its application to takeover the Osborne copper and gold exploration project in Queensland from Barrick Gold Corporation, currently the world's biggest gold explorer.

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Company chief executive Peter Reeve explained that Ivanhoe was required to seek the approval of FIRB since the company is 81 percent controlled by Ivanhoe Mines Ltd of Canada and a go signal from the federal government is an essential condition in order to wrap up the purchase of the Osborne assets which is expected to be finalised by end of September.

Mr Reeve added that Ivanhoe is also required to secure ministerial approval for transfer of exploration permit though that could be waived by the company.

With an almost certain acquisition of the Osborne project, Ivanhoe can now expect a significant reduction on the capital cost of developing its high-grade molybdenum and rhenium mine in Merlin, also located in the Cloncurry region of north west Queensland, according to Mr Reeve.

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Mr Reeve told AAP that Ivanhoe should be looking forward for a producer status come next year which should further slash the risk of ramping up the Merlin exploration site, adding that the announced acquisition entailed the processing facilities.

He added that with two major projects in Queensland for Ivanhoe, the company should be looking for more landholdings in the Cloncurry region.

As of 1327 on Monday, Ivanhoe Australia stocks were trading at $2.99, improving by 14 cents or 4.91 percent on Friday's trading.

This article is copyrighted by IBTimes.com.au, the business news leader