Base metal and mineral explorer Ivanhoe Australia Ltd (ASX:IVA) has announced that it will only support Xstrata's $175 million purchase of Exco Resources' Cloncurry project if its shareholders receive all proceeds.
Ivanhoe is Exco Resources major shareholder with a 22.8 per cent stake and Xstrata’s planned acquisition must secure shareholder approval to proceed.
Ivanhoe says it has communicated its view to Exco management that all after-tax proceeds from the sale should be returned to Exco shareholders.
The company also adds that it is unlikely to decide how it will vote in relation to the proposed sale until it knows the size and the timing of the proposed capital distribution.
In the 2010 financial year Ivanhoe Australia reported a net loss of $78.8 million.
