Rio Tinto increases its stake in Ivanhoe Mines to 48.5 per cent
LONDON, UK, Aug. 24, 2011 /CNW/ --
LONDON, UK, Aug. 24, 2011 /CNW/ - Rio Tinto today exercised its right to
subscribe for and acquire common shares in Ivanhoe Mines Ltd. under its
Subscription Right. As a result, Ivanhoe Mines will issue 27,896,570
million new shares to a wholly-owned subsidiary of Rio Tinto, Rio Tinto
International Holdings Limited, increasing Rio Tinto's ownership in
Ivanhoe Mines by 2.0 per cent to a total of 358,158,442 common shares
or 48.5 per cent.
The price paid per share was C$18.98 and the total consideration for the
exercise of this Subscription Right was C$529.5 million.
The subscription was made in accordance with existing contractual
arrangements between Rio Tinto and Ivanhoe Mines that permits share
purchases in certain circumstances and subject to certain limits. Under
the terms of these agreements and subject to certain exceptions, Rio
Tinto's current maximum permitted shareholding in Ivanhoe Mines is 49
per cent.
The subscription was made in order to increase Rio Tinto's ownership of
Ivanhoe in accordance with its contractual rights. Depending upon its
assessment of Ivanhoe's business, prospects and financial condition,
the market for Ivanhoe's securities, general economic and tax
conditions, and other factors, Rio Tinto will consider availing itself
of its rights to acquire additional securities of Ivanhoe.
Today's subscription reinforces Rio Tinto's commitment to the Oyu Tolgoi
project, which is a natural fit with its strategy of focusing on cost
competitive, long-life assets with significant growth potential.
Together with Ivanhoe and the Government of Mongolia, Rio Tinto is
determined to develop Oyu Tolgoi in a sustainable, mutually beneficial
manner for the people of Mongolia.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the
UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio
Tinto Limited, which is listed on the Australian Securities Exchange.
Rio Tinto's business is finding, mining, and processing mineral
resources. Major products are aluminium, copper, diamonds, energy (coal
and uranium), gold, industrial minerals (borax, titanium dioxide, salt)
and iron ore. Activities span the world but are strongly represented in
Australia and North America with significant businesses in South
America, Asia, Europe and southern Africa.
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