Ivanhoe Mines and Rio Tinto approve agreement to provide funding to continue full-scale construction toward early production in 2012 from first phase of Oyu Tolgoi copper-gold complex in Mongolia.
New and existing funding measures could yield up to US$6.5 billion. Rio Tinto to fully participate in Ivanhoe Mines’ expanded rights offering now intended to raise up to US$1.2 billion. Companies agree to suspend arbitration proceedings for 6 months.
Rio Tinto to immediately exercise US$300 million portion of Series B. Ivanhoe warrants Rio Tinto to purchase 20 million Ivanhoe shares at market price. Firm cap of 49 per cent on Rio Tinto’s ownership stake in Ivanhoe Mines to continue until January 18, 2012. Rio Tinto to work with Ivanhoe to secure a comprehensive project finance package. Rio Tinto to provide Ivanhoe with up to US$1.8 billion in interim financing. Rio Tinto to assume management of Oyu Tolgoi, subject to approval of Oyu Tolgoi LLC board.
Read full press release from Ivanhoe Mines.
About Oyu Tolgoi LLC (www.ot.mn)
Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, is a strategic partnership between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Located in the South Gobi, Oyu Tolgoi commenced shipment of product to customers in July 2013. Oyu Tolgoi is managed by Rio Tinto, which is investing global expertise and cutting-edge technology to help develop Mongolia’s mining industry and ensure Oyu Tolgoi is one of the world’s most advanced mines. For Oyu Tolgoi, nothing matters more than safety. The business operates under the principle that if a job cannot be done safely, it will not be done at all.