Rio Tinto announced that they have increased their stake in Ivanhoe Mines Ltd. under its Subscription Right. 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. 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.”
“The 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” said Rio Tinto on its website.