Oyu Tolgoi IA (Update 3): Seven of 10 Investment Agreement conditions completed

Dec 23 • Companies, Mining • 784 Views • 1 Comment on Oyu Tolgoi IA (Update 3): Seven of 10 Investment Agreement conditions completed

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A total of seven of the required 10 conditions precedent now have been satisfied since the signing of the Investment Agreement on October 6, 2009.
The conditions were:

  • the increase of Rio Tinto’s ownership stake in Ivanhoe Mines from 9.9% to 19.7% through a US$388 million payment to Ivanhoe;
  • the conversion into mining licences of exploration licences held by Entrée Gold on extensions of the Oyu Tolgoi mineralized trend, whose development is covered under a joint-venture
  • agreement with Ivanhoe Mines;
  • the establishment of a Standing Working Committee, comprised of representatives of the Government and Oyu Tolgoi LLC, which will operate during construction of the mining complex
  • to streamline the granting of permits and expedite Mongolian customs clearances;
  • the signing of the Investment Agreement and companion Shareholders’ Agreement by all relevant parties;
  • the restructuring of Ivanhoe’s subsidiary, Ivanhoe Mines Mongolia Inc. — now renamed Oyu Tolgoi LLC — which continues to hold the Oyu Tolgoi licences and will operate the project;
  • the separation of assets unrelated to the Oyu Tolgoi Project; and
  • the registration in Mongolia of a revised charter for Oyu Tolgoi LLC.

After the remaining conditions precedent have been satisfied, 34% of the shares of the holding company, Oyu Tolgoi LLC, will be owned by Erdenes MGL, a Mongolian state-owned resources
company, and 66% will continue to be owned by Ivanhoe Mines. (symbol IVN)

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One Response to Oyu Tolgoi IA (Update 3): Seven of 10 Investment Agreement conditions completed

  1. […] of the holding company is owned by the Mongolian government itself and that will not make agreement easy to get on any substantive […]

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