The International Resource Journal: Rio raises stake in Ivanhoe | outstanding common shares buy

Rio raises stake in Ivanhoe | outstanding common shares buy
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Nuala  Gallagher on 24 January, 2012 02:24:00
 
IRJ – January 25 - Anglo-Australian mining multinational Rio Tinto
(“Rio”) has upped its stake in Ivanhoe Mines (“Ivanhoe”)
to gain a controlling portion of 51 per cent in the Canadian firm—a move
tipped to be well-timed ahead of “a very important phase in the
development of the Oyu Tolgoi project” according to Rio’s copper
chief executive Andrew Harding, referring to Ivanhoe’s multibillion dollar
Mongolian copper project.
“Rio Tinto’s move to a majority stake in Ivanhoe further
demonstrates our commitment to the safe and successful development of the Oyu
Tolgoi mine for the benefit of all stakeholders,” Harding said.
“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.”
In purchasing 15.1 million common shares (or two per cent of the remaining
outstanding shares) in Ivanhoe, the buy-up came at a cost of C$302 million at
C$20.00 per share for Rio; the third largest miner globally. It leaves the
mining multinational in possession of 377,397,658 common shares, or 51 per cent
of Ivanhoe’s outstanding common shares.
Oyu Tolgoi, said to be 70 per cent complete, is approximately two-thirds owned
by Ivanhoe. The Mongolian government holds a 32 per cent stake in the project.
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