Rio Tinto increases holding in Ivanhoe Mines

Australia-based mining company Rio Tinto has announced that it is exercising its right to acquire common shares in Vancouver, Canada-headquartered mineral exploration and development company Ivanhoe Mines Ltd (Ivanhoe) under its subscription right.
 
Accordingly, Ivanhoe Mines will issue 27,896,570 new shares to a wholly-owned subsidiary of Rio Tinto, Rio Tinto International Holdings Limited, increasing Rio Tinto's ownership in Ivanhoe Mines by 2.0 percent to a total of 358,158,442 common shares or 48.5 percent.
 
The price paid per share was C$18.98 and the total consideration for the exercise of this subscription right was C$529.5 million. 
 
The subscription was made in accordance with existing contractual arrangements between Rio Tinto and Ivanhoe Mines that permits share purchases in certain circumstances and subject to certain limits. Under the terms of these agreements and subject to certain exceptions, Rio Tinto's current maximum permitted shareholding in Ivanhoe Mines is 49 percent.