Rio lifts stake in Ivanhoe Mines to 29%
June 29, 2010
Rio Tinto Limited (RIO) has said it would increase its stake in Ivanhoe Mines to 29.6% through the exercise of all its Series A warrants. This represents a 7.3% hike in ownership of the company by Rio Tinto, and is set to cost the miner US$393 million.
Chief executive, Andrew Harding, Copper for Rio Tinto said the money would allow Ivanhoe Mines to continue the development of the Oyu Tolgoi copper and gold project in Mongolia.
”Our further investment in Ivanhoe Mines underlines our confidence in the quality of the world class Oyu Tolgoi deposit and its priority in our project portfolio,” Mr Harding said.
Mr Harding said production was expected to commence in 2013, with a five-year ramp up to full production.
Rio Tinto noted it has the potential to exercise more warrants, which, if exercised, would take its interest in Ivanhoe to around 44%.
At the close Tuesday, Rio Tinto shares were trading at $68.42.
Chief executive, Andrew Harding, Copper for Rio Tinto said the money would allow Ivanhoe Mines to continue the development of the Oyu Tolgoi copper and gold project in Mongolia.
”Our further investment in Ivanhoe Mines underlines our confidence in the quality of the world class Oyu Tolgoi deposit and its priority in our project portfolio,” Mr Harding said.
Mr Harding said production was expected to commence in 2013, with a five-year ramp up to full production.
Rio Tinto noted it has the potential to exercise more warrants, which, if exercised, would take its interest in Ivanhoe to around 44%.
At the close Tuesday, Rio Tinto shares were trading at $68.42.
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