Deliver Your News to the World

Rio Tinto acquires additional shares of Ivanhoe Mines on automatic conversion of credit facility


Rio Tinto confirmed today that it has acquired 40,083,206 common shares of Ivanhoe Mines, increasing its ownership by 5.3 per cent to 34.9 per cent of Ivanhoe Mines’ outstanding common shares (1). The common shares were acquired in accordance with the terms of the US$350 million convertible credit facility Rio Tinto made available to Ivanhoe Mines Ltd. in 2007 which was fully drawn down by mid-2008 and which matured today. The outstanding principal and accrued interest ($400,832,056) under the credit facility automatically converted on maturity into common shares of Ivanhoe Mines at a price of US$10.00 per share.

Rio Tinto now owns 184,747,856 common shares of Ivanhoe Mines. If Rio Tinto were to exercise all of its share purchase warrants it would own approximately 267,214,784 common shares of Ivanhoe Mines representing an interest in Ivanhoe of around 44 per cent.

Pursuant to certain existing contractual arrangements between Rio Tinto and Ivanhoe Mines, Rio Tinto has the right at any time to exercise its remaining share purchase warrants into common shares of Ivanhoe. Rio Tinto also has, among other things, the right to acquire additional securities so as to maintain its proportional equity interest in Ivanhoe Mines, and the right to acquire additional Ivanhoe Mines securities in certain other circumstances and subject to certain limits.

Depending upon its assessment of Ivanhoe Mines’ business, prospects and financial condition, the market for Ivanhoe Mines’ securities, general economic and tax conditions, and other factors, Rio Tinto will consider availing itself of its rights to acquire additional securities of Ivanhoe Mines.

(1) Based on 488,036,669 shares issued and outstanding as of June 30, 2010, as set out in Ivanhoe’s Second Quarter Report for the Three and Six Months ended June 30, 2010.
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, talc) 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.


This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.