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Johannesburg – Resources group Rio Tinto has raised its stake in Ivanhoe Mines after it bought 133.571 million shares under Ivanhoe's rights offering at a total cost of $935m.
The purchase represents about 51% 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 offering‚ Rio Tinto owned 377 397 658 common shares and on completion of the rights offering‚ it owns 510 968 850 common shares.
Rio Tinto also owns 74.247 million Series D Warrants of Ivanhoe after adjustment to give effect to the rights offering.
If Rio Tinto were to fully exercise these warrants‚ it would acquire an additional 74 million common shares and would own 585 216 310 common shares representing 54.4% of the outstanding common shares.
Rio Tinto has anti-dilution rights that permit it to acquire additional securities of Ivanhoe so as to maintain its proportional equity interest in Ivanhoe. Rio Tinto also has the right‚ until October 24 2012‚ to acquire additional Ivanhoe securities under its equity financing right of first offer.
The purpose of Rio Tinto acquiring additional shares under Ivanhoe's rights offering was to honour its contractual obligations to Ivanhoe and to provide additional funding to Ivanhoe to ensure the timely development of Ivanhoe's Oyu Tolgoi copper-gold mine in Mongolia.
Rio Tinto said it had no present intention of acquiring additional securities of Ivanhoe.
Depending on its evaluation of the business‚ prospects and financial condition of Ivanhoe‚ the market for Ivanhoe's securities‚ general economic and tax conditions and other factors‚ Rio Tinto may acquire or sell some or all of the securities‚ it added.
The purchase represents about 51% 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 offering‚ Rio Tinto owned 377 397 658 common shares and on completion of the rights offering‚ it owns 510 968 850 common shares.
Rio Tinto also owns 74.247 million Series D Warrants of Ivanhoe after adjustment to give effect to the rights offering.
If Rio Tinto were to fully exercise these warrants‚ it would acquire an additional 74 million common shares and would own 585 216 310 common shares representing 54.4% of the outstanding common shares.
Rio Tinto has anti-dilution rights that permit it to acquire additional securities of Ivanhoe so as to maintain its proportional equity interest in Ivanhoe. Rio Tinto also has the right‚ until October 24 2012‚ to acquire additional Ivanhoe securities under its equity financing right of first offer.
The purpose of Rio Tinto acquiring additional shares under Ivanhoe's rights offering was to honour its contractual obligations to Ivanhoe and to provide additional funding to Ivanhoe to ensure the timely development of Ivanhoe's Oyu Tolgoi copper-gold mine in Mongolia.
Rio Tinto said it had no present intention of acquiring additional securities of Ivanhoe.
Depending on its evaluation of the business‚ prospects and financial condition of Ivanhoe‚ the market for Ivanhoe's securities‚ general economic and tax conditions and other factors‚ Rio Tinto may acquire or sell some or all of the securities‚ it added.
