14th Jan 2014 11:44
LONDON (Alliance News) - Rio Tinto PLC has acquired 511.0 million shares in Turquoise Hill Resources Ltd for a payment of CAD1.3 million or CAD2.53 per share.
The major mining company said Tuesday the acquisition represents roughly 50.8% of the shares offered as part of a rights offering set up by Turquoise Hill, which was fully subscribed.
The acquisition means that Rio Tinto owns a total of 1.02 billion shares in Turquoise Hill, allowing it to maintain its previous 50.8% holding before the rights offering.
Turquoise Hill will be using the funds to repay all amounts outstanding from its USD1.8 billion interim funding facility and a USD600 million funding facility both provided by Rio Tinto.
Turqoise Hill is a Canadian mineral exploration and development company which has a principal multi-commodity mining operations in Australia and Mongolia.
Rio Tinto said it has no immediate plans to increase its holding in Turquoise Hill.
Rio Tinto shares were down 0.9% to 3,149.50 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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