JOHANNESBURG (miningweekly.com) – Pursuant to a share purchase agreement with diversified mining major Rio Tinto subsidiary Rio Tinto Holdings, and Canadian mineral exploration and development company Turquoise Hill Resources, Bermuda-based Mantos Copper will acquire about 13-million shares in copper development company Mason Resources.
Copper-focused Mantos, which owns and operates two mines in northern Chile – Mantos Blancos and Mantoverde – will acquire about 7.5-million shares from Rio Tinto Holdings, representing about 9.58% of the outstanding Mason shares, and about 6.2-million shares from Turquoise Hill, representing about 7.98% of the outstanding Mason shares, at C$0.20 a share for an aggregate purchase price of about C$2.7-million. Mantos Copper will, therefore, acquire about 17.56% of the outstanding Mason shares.
This acquisition dovetails with Mantos’s long-term strategy to invest in attractive copper opportunities in low-risk jurisdictions.
Mantos announced on Friday that, depending on market conditions and the company’s view of Mason's prospects, it may acquire additional Mason securities from time to time in the future, or it may sell all or a portion of its Mason securities.
In addition to owning Rio Tinto Holdings, Rio Tinto also indirectly owns about 50.8% of Turquoise Hill, and is therefore deemed to have had indirect beneficial ownership over the Mason shares to be sold by Turquoise Hill.
Following Mantos’s acquisition of its shares in Mason, Rio Tinto will no longer own any Mason shares.
The diversified mining major noted on Friday that the sale is expected to be completed within the next seven days and is part of Rio Tinto's ongoing review of its investment holdings.