PERTH (miningweekly.com) – Major Rio Tinto has agreed to amend a funding plan with Turquoise Hill Resources (TRQ) in order to provide liquidity of up to $400-million in short-term early advances, while TRQ evaluates a takeover offer from the mining giant.
A Special Committee of TRQ is currently evaluating Rio’s C$34-a-share all-cash proposal to acquire the remaining 49% of the issued and outstanding shares of TRQ that Rio does not currently own.
Subject to the satisfaction of certain minimum liquidity, and other, conditions, the early advances will be available at any time up to their maturity at the end of December 2022, and enable TRQ to fund the ongoing development of the Oyu Tolgoi underground project in Mongolia.
The deadline in the previously agreed funding plan for Turquoise Hill to conduct an initial equity offering of at least $650-million has also been extended from the end of August 2022 to the end of 2022.
Rio currently beneficially owns more than 102-million shares of TRQ, representing approximately 51% of the issued and outstanding common shares of the takeover target. Rio also has anti-dilution rights that permit it to acquire additional securities of TRQ so as to maintain its proportionate equity interest in TRQ from time to time.