Rio Tinto increases support for Ivanhoe Mines

23rd May 2012 14:23

Rio Tinto and Ivanhoe Mines have amended some of the terms of their recently agreed memorandum regarding a funding packing for Ivanhoe. Rio has confirmed that it will take up its full basic subscription privilege under the $1.8bn rights offering relating to its 51% shareholding in Ivanhoe.The miner will also eliminate the material adverse change condition for its standby commitment in relation to a decline in Ivanhoe's share price and the standby commitment fee will be paid in cash, with Rio waiving its previously announced entitlement to reinvest its standby commitment fee in Ivanhoe common shares. In addition, Rio will continue to provide a standby commitment for the full $1.8bn rights offering, meaning it will acquire any shares not taken up in the rights offering. The previously announced $8.34 subscription price will also be removed.Rio's share price fell 3.8% to 2,825p by 15:02. NR