Monday, March 22, 2010

Rio Tinto concludes Ivanhoe Mines share take-up

Robert Friedland, Executive Chairman of Canadian and USA-listed Ivanhoe Mines has announced that the company has closed its private placement with Rio Tinto. Ivanhoe Mines has issued 15 million common shares to Rio Tinto for $241.1 million and has used $195.4 million of the proceeds to purchase from Rio Tinto key mining and milling equipment for the Oyu Tolgoi copper-gold mining complex in Mongolia.

The equipment acquired from Rio Tinto includes principal components for the 100,000 t/d Oyu Tolgoi phase-one copper-gold concentrator, including two large, 38-foot-diameter, semi-autogenous grinding (SAG) mills, four ball mills, re-grind mills, crushers, motors, gearless drives, conveyors and flotation cells. Also included are the hoist and major components for the sinking of Shaft #2 - the 10 m diameter, main production shaft for the underground block-cave mine at the Hugo North Deposit.

With the completion of this transaction, Rio Tinto has increased its ownership in Ivanhoe Mines from 19.6% to 22.4%. Rio Tinto holds rights to subscribe for common shares from Ivanhoe's treasury and also to make purchases on the open market that could increase Rio Tinto's stake in Ivanhoe to up to 46.6% during the next 19 months.

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