London, England — 31 July 2012 – Rio Tinto plc says it paid about US$935 million for 133.6 million shares of Ivanhoe Mines Limited, or 51% of the stock that the Canadian miner placed on offer in a shareholder rights offering.
The purchase allows Anglo-Australian mining giant Rio to maintain its 51% ownership stake in Ivanhoe, which is developing the massive Oyu Tolgoi copper-gold project in Mongolia, Reuters reports. Rio paid US$7 a common share in the fully subscribed rights offering and now holds more than 510 million shares of Ivanhoe.
Shares of Ivanhoe fell 1.25% to C$8.67 on the Toronto Stock Exchange on Monday morning. The stock has halved in value this year.
The offering, which closed on Monday, is part of a financing plan for developing Oyu Tolgoi, located in a remote region of Mongolia, about 80km north of the Chinese border.
The mine is under construction, with first production expected later this year and commercial production in 2013, according to Ivanhoe’s website.
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