Rio Tinto takes majority stake in Ivanhoe Mines
Rio Tinto has become the majority shareholder in Ivanhoe Mines, developer of the Oyu Tolgoi mine in Mongolia, purchasing shares that take its stake to 51%.
Preparing the open pit at Oyu Tolgoi.
Rio Tinto bought an additional 15.1m, or 2%, of Ivanhoe’s common shares from two sellers in a privately negotiated share purchase transaction.
The shares were purchased for an aggregate of C$302 million at a price per share of C$20.00.
Rio Tinto has anti-dilution rights that permit it to acquire additional Ivanhoe securities so as to maintain its proportional equity interest in Ivanhoe. Rio Tinto also has the right to acquire additional Ivanhoe securities under its equity financing right of first offer.
Rio Tinto chief executive copper, Andrew Harding, said the share purchase was made at a prescient time, with major milestones looming for the mine.
“We are approaching a very important phase in the development of the Oyu Tolgoi mine, with 70% of the construction now complete. The lead-up to first ore in the second half of 2012 will mark an important milestone in the path towards commercial production of copper concentrate, slated for the first half of 2013.”
Rio Tinto said it currently has no intention to purchase additional securities of Ivanhoe.
