Rio Tinto pays C$1.2bn to maintain shareholding in Turquoise Hill
PERTH (miningweekly.com) – Mining giant Rio Tinto on Tuesday confirmed that it had maintained its shareholding in Vancouver-headquartered Turquoise Hill during the company’s rights offering to develop the Oyu Tolgoi copper/gold mine, in Mongolia.
Last week, Turquoise Hill completed a $2.4-billion rights offering, the proceeds of which would be used to repay its outstanding debt and to fund the Oyu Tolgoi project.
The debt included a $600-million bridge facility with Rio.
Rio said it had acquired more than 510.9-million shares under the Turquoise Hill rights offer, at a total cost of C$1.2-billion, or C$2.53 a share.
The purchase represents approximately 50.8% of the common shares offered under the rights offering. The rights offering, which closed on Tuesday, was fully subscribed.
Prior to the completion of the rights offering, Rio owned about 510.9-million common shares of Turquoise Hill, representing approximately 50.8% of the outstanding common shares. Upon the completion of the rights offering, Rio owned more than one-billion common shares, representing approximately 50.8% of the outstanding common shares.
Rio Tinto also acquired about 74.2-million anti-dilution Series D warrants of Turquoise Hill in connection with the rights offering, in addition to owning a current 74-million Series D warrants of Turquoise Hill.
If Rio were to fully exercise all of the Series D Warrants and anti-dilution Series D warrants, the major would acquire an additional 148.4-million common shares.
Following such issuance, Rio would own more than 1.1-billion common shares, representing 54.2% of the then outstanding common shares.
Rio Tinto also has anti-dilution rights that permit it to acquire additional securities of Turquoise Hill, so as to maintain its proportional equity interest in Turquoise Hill, from time to time.
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