Rio Tinto doubles Ivanhoe stake

28th Oct 2009 08:02

Rio Tinto has paid $388m for another 9.8% of Canada's Ivanhoe Mines after completing the second tranche of its private placement investment, taking its total interest to 19.7%.The mining heavyweight, which bought 46.3m shares at $8.38 each, could own 258m shares, or 43.1%, if it exercised and converted all of its remaining warrants and securities of Ivanhoe."Rio Tinto has no present intention of acquiring other securities of Ivanhoe, except as regards its right to acquire additional securities so as to maintain its proportional equity interest in the future, or of disposing of any of the securities of Ivanhoe which it holds," said Rio in a statement Wednesday."Depending upon its evaluation of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions and other factors, Rio Tinto may acquire additional securities of Ivanhoe or sell some or all of the securities it holds."