Rio Tinto acquires additional

RNS Number : 5875S

Rio Tinto PLC

13 September 2010

 



Rio Tinto acquires additional shares of Ivanhoe Mines on automatic conversion of credit facility

13 September 2010

Rio Tinto confirmed today that it has acquired 40,083,206 common shares of Ivanhoe Mines, increasing its ownership by 5.3 per cent to 34.9 per cent of Ivanhoe Mines' outstanding common shares^.[1]  The common shares were acquired in accordance with the terms of the US$350 million convertible credit facility Rio Tinto made available to Ivanhoe Mines Ltd. in 2007 which was fully drawn down by mid-2008 and which matured today. The outstanding principal and accrued interest ($400,832,056) under the credit facility automatically converted on maturity into common shares of Ivanhoe Mines at a price of US$10.00 per share.

Rio Tinto now owns 184,747,856 common shares of Ivanhoe Mines. If Rio Tinto were to exercise all of its share purchase warrants it would own approximately 267,214,784 common shares of Ivanhoe Mines representing an interest in Ivanhoe of around 44 per cent.

Pursuant to certain existing contractual arrangements between Rio Tinto and Ivanhoe Mines, Rio Tinto has the right at any time to exercise its remaining share purchase warrants into common shares of Ivanhoe. Rio Tinto also has, among other things, the right to acquire additional securities so as to maintain its proportional equity interest in Ivanhoe Mines, and the right to acquire additional Ivanhoe Mines securities in certain other circumstances and subject to certain limits.

Depending upon its assessment of Ivanhoe Mines' business, prospects and financial condition, the market for Ivanhoe Mines' securities, general economic and tax conditions, and other factors, Rio Tinto will consider availing itself of its rights to acquire additional securities of Ivanhoe Mines.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.

For further information, or to obtain a copy of Rio Tinto's early warning report once it is filed with the Canadian securities regulators, please contact:

Media Relations, EMEA / Americas Tony Shaffer Office:  [phone] Mobile: [phone] Christina Mills Office:  [phone] Mobile: [phone]	Media Relations, Australia / Asia David Luff Office:  [phone] Mobile: [phone]
Media Relations, Canada Bryan Tucker Office: [phone] Mobile: [phone]
Investor Relations, London Mark Shannon Office:  [phone] Mobile: [phone] David Ovington Office:  [phone] Mobile: [phone] Investor Relations, North America Jason Combes Office:  [phone] Mobile: [phone]	Investor Relations, Australia Dave Skinner Office:  [phone] Mobile: [phone] Simon Ellinor Office:  [phone] Mobile: [phone]

Website:  www.riotinto.com

Email:     [e-mail] / [e-mail]

High resolution photographs and media pack available at: http://www.riotinto.com/media

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^[1] Based on 488,036,669 shares issued and outstanding as of June 30, 2010, as set out in Ivanhoe's Second Quarter Report for the Three and Six Months ended June 30, 2010.

 

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