Anglo-Australian mining giant Rio Tinto announced on September 13 that it has acquired 40,083,206 common shares of Vancouver, Canada-based diversified global miner Ivanhoe Mines, increasing its ownership by 5.3 percent to 34.9 percent of Ivanhoe Mines' outstanding common shares.
According to a Rio Tinto statement, the common shares were acquired in accordance with the terms of the US$350 million convertible credit facility the Australian miner made available to Ivanhoe Mines Ltd in 2007 which was fully drawn down by mid-2008 and matured on September 13. 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 per share.
If Rio Tinto were to exercise all of its share purchase warrants it would own 44 percent of Ivanhoe Mines. The Australian miner said that it still holds the right to purchase up to 44 percent of the company, as well as the right to purchase Ivanhoe Mines securities in certain conditions.