HomeBase MetalsRio Tinto doubles investment in Ivanhoe Mines

Rio Tinto doubles investment in Ivanhoe Mines

Ivanhoe’s Oyu
Tolgoi mine “’ the
shaft bottom at
1 385 m
 
London, England — MININGREVIEW.COM — 28 October 2009 – Leading international mining group Rio Tinto has confirmed that it has completed the second tranche of its private placement investment in Ivanhoe Mines Limited “’ an international mining company with operations focused in the Asia Pacific region “’ increasing its ownership by 9.8% to 19.7% of Ivanhoe’s common shares.
 
In a statement issued here, Ivanhoe explained that the second tranche consisted of 46,304,473 common shares at a subscription price of US$8.38 per share for a total consideration of just over US$388 million (R3.1 billion).

It added that if Rio Tinto were to exercise and convert all of its remaining warrants and securities of Ivanhoe, it would own approximately 258 million common shares of Ivanhoe, representing 43.1% of Ivanhoe’s common shares.

Rio Tinto confirmed that it had no present intention of acquiring other securities of Ivanhoe, except as regards its right to acquire additional securities so as to maintain its proportional equity interest in the future. It also had no intention of disposing of any of the securities of Ivanhoe which it holds.

The statement went on to say that, depending on its evaluation of Ivanhoe’s business, prospects and financial condition, the market for Ivanhoe’s securities, general economic and tax conditions and other factors, Rio Tinto might acquire additional securities of Ivanhoe or sell some or all of the securities it holds.

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