Turquoise Hill says Odey's letter contains false assumptions
Canadian miner Turquoise Hill Resources said on Thursday hedge fund Odey Asset Management's letter to its majority owner Rio Tinto contained a number of false assumptions and misinformation about the company and its funding plan.
"Odey has a clear financial motive to depress Turquoise Hill's share price," Turquoise Hill said.
Shares of Turquoise Hill sank on Wednesday after hedge fund Odey said it did not believe the $4.4-billion project finance package related to the Oyu Tolgoi copper mine in Mongolia is accurately described as "project" finance.
Odey did not immediately respond to Reuters' request for comment.
The Oyu Tolgoi deposit in south Mongolia is jointly owned by Rio-controlled Turquoise Hill and the Mongolian state and ranks as one of the world's largest known copper and gold deposits.
Earlier this month Turquoise Hill began arbitration proceedings against Rio to seek "clarity" on financing the mine, one of Rio's biggest growth projects.
Turquoise Hill said Thursday that an additional $1.1-billion would need to be sourced with further bank debt, bonds or a metal stream should it and Rio re-profile existing debt and raise an additional $500-million of debt as contemplated.
The company said it would need to raise additional equity of at least $3-billion if neither the re-profiling nor additional debt or hybrid financing is completed.
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