Mongolian Mining to raise $700m via Hong Kong IPO

HONG KONG (Reuters) - 

Mongolian coking coal producer Mongolian Mining Corp (formerly Energy Resources) plans to raise about $700 million through an initial public offering on the Hong Kong stock exchange, according a term sheet obtained by Reuters.

Mongolian Mining, which aims to price the offer on Sept. 24, will be the first company listed in Hong Kong to be fully based and operated in Mongolia. The listing is scheduled for Oct. 5.

Citigroup (C.N) and JP Morgan (JPM.N) were joint global coordinators for the offer, the term sheet said.

Global investors are have shown increased interest in Mongolia since it sealed a deal last year with Ivanhoe Mines Ltd (IVN.TO) and Rio Tinto Ltd (RIO.AX)(RIO.L) to develop the $3 billion Oyu Tolgoi mine, one of the world's biggest untapped copper and gold deposits.

Mongolia's domestic companies are seeking foreign capital to help them expand. The Mongolian government is trying to connect local companies and its stock market with the rest of Asia, hoping to turn domestic franchises into regional ones.

Mongolian Mining said it would use the proceeds to buy more mining assets and to build infrastructure. (Reporting by Denny Thomas; Editing by Chris Lewis)

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