Rio Tinto Maintains 50.8% Turquoise Hill Stake

(RTTNews) - Anglo-Australian mining giant Rio Tinto Plc. (RIO, RIO.L, RIO.AX) said On Monday that it maintained its 50.8% shareholding in Turquoise Hill Resources Ltd. (TRQ, TRQ.TO) following completion of the rights offering.

Rio Tinto, Turquoise Hill's largest shareholder and Oyu Tolgoi's project operator, noted that it has acquired 510.98 million common shares of Turquoise Hill under Turquoise Hill's rights offering at a total cost of C$1.29 billion or C$2.53 per share. The purchase represents about 50.8 per cent of the common shares offered under the rights offering. The rights offering, which closed Monday, was fully subscribed.

Turquoise Hill will be using a portion of the funds it receives under the rights offering to repay all amounts outstanding under the US$1.8 billion interim funding facility and the US$600 million secured bridge funding facility each provided to Turquoise Hill by Rio Tinto.

Prior to the completion of the rights offering, Rio Tinto owned 510.98 million common shares of Turquoise Hill, representing approximately 50.8 per cent of the outstanding common shares. Upon the completion of the rights offering, Rio Tinto owns 1.02 billion common shares, representing approximately 50.8 per cent of the outstanding common shares.

Rio Tinto said it also acquired 74.25 million Anti-Dilution Series D Warrants of Turquoise Hill in connection with the rights offering. In addition, Rio Tinto owns 74.25 million Series D Warrants of Turquoise Hill. If Rio Tinto were to fully exercise all of the Series D Warrants and Anti- Dilution Series D Warrants, Rio Tinto would acquire an additional 148.49 million common shares. Following such issuance, Rio Tinto would own 1.17 billion common shares, representing 54.2 per cent of the then outstanding common shares.

Rio Tinto noted that it also has anti-dilution rights that permit it to acquire additional securities of Turquoise Hill so as to maintain its proportional equity interest in Turquoise Hill from time to time.

Rio Tinto stated that it has no present intention of acquiring additional securities of Turquoise Hill. Depending upon its evaluation of the business, prospects and financial condition of Turquoise Hill, the market for Turquoise Hill's securities, general economic and tax conditions and other factors, Rio Tinto may directly or indirectly acquire or sell some or all of the securities of Turquoise Hill.