PRESS RELEASE: Rio Tinto to Exercise the Series A Warrants in Ivanhoe Mines

29th Jun 2010 22:30

LONDON--(BUSINESS WIRE)--June 29, 2010-- Rio Tinto confirmed today that it has given notice to Ivanhoe Mines Ltd (Ivanhoe) that it is exercising all of its Series A warrants which will increase Rio Tinto's ownership of Ivanhoe shares by 7.3 per cent to 29.6 per cent and provide sufficient funds to Ivanhoe to continue the development of the Oyu Tolgoi copper and gold complex as currently scheduled. The Series A warrants entitle Rio Tinto to acquire 46,026,522 shares at a subscription price of US$8.54 per share, for total consideration of approximately US$393 million. Andrew Harding, chief executive, Copper, Rio Tinto said "Exercising the warrants early ensures Ivanhoe has sufficient funds to meet the current Oyu Tolgoi development schedule. Our further investment in Ivanhoe Mines underlines our confidence in the quality of the world class Oyu Tolgoi deposit and its priority in our project portfolio." Rio Tinto and Ivanhoe are development partners for the Oyu Tolgoi project. Production is expected to commence in 2013, with a five year ramp up to full production. After the completion of the exercise of the Series A warrants, Rio Tinto will own 144.66 million shares of Ivanhoe. If Rio Tinto were to exercise all of its remaining share purchase warrants and convert its US$350 million loan into shares it would own approximately 267.8 million shares of Ivanhoe representing an interest in Ivanhoe of around 44 per cent. Pursuant to certain existing contractual arrangements between Rio Tinto and Ivanhoe, Rio Tinto has the right at any time to exercise its remaining share purchase warrants and/or convert its convertible loan into 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, and the right to acquire additional Ivanhoe securities in certain other circumstances and subject to certain limits. Depending upon its assessment of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions, and other factors, Rio Tinto will consider availing itself of its rights to acquire additional securities of Ivanhoe. 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. High resolution photographs and media pack available at: http://www.riotinto.com/media/press_kit.asp CONTACT: Rio Tinto plc Media Relations, London Faeth Birch / Conor McClafferty / Clare Hunt Office: +44 (0) 20 7781 1138 Mobile: +44 (0) 7920 041 003 or Christina Mills Office: +44 (0) 20 7781 1154 Mobile: +44 (0) 7825 275 605 or Media Relations, Australia David Luff Office: +61 (0) 3 9283 3620 Mobile: +61 (0) 0419 850 205 or Media Relations, Americas Tony Shaffer Office: +1 202 393 0266 Mobile: +1 202 256 3667 or Media Relations, Canada Stefano Bertolli Office: +1 (0) 514 848 8151 Mobile: +1 (0) 514 945 1800 or Investor Relations, London Mark Shannon Office: +44 (0) 20 7781 1178 Mobile: +44 (0) 7917 576597 or David Ovington Office: +44 (0) 20 7781 2051 Mobile: +44 (0) 7920 010 978 or Investor Relations, Australia Dave Skinner Office: +61 (0) 3 9283 3628 Mobile: +61 (0) 408 335 309 or Simon Ellinor Office: +61 (0) 7 3361 4365 Mobile: +61 (0) 439 102 811 or Investor Relations, North America Jason Combes Office: +1 (0) 801 204 2919 Mobile: +1 (0) 801 558 2645 Email: [email protected] Website: www.riotinto.com SOURCE: Rio Tinto plc Copyright Business Wire 2010 Order free Annual Report for Rio Tinto PLC Visit http://djnweurope.ar.wilink.com/?ticker=GB0007188757 or call +44 (0)208 391 6028 (END) Dow Jones Newswires June 29, 2010 17:30 ET (21:30 GMT)