ProactiveInvestors: Ivanhoe, Rio Tinto ink funding deal on Mongolia copper mine

Ivanhoe Mines Wednesday signed an agreement with majority shareholder Rio Tinto to ensure funding of the $6 billion Oyu Tolgoi copper and gold mine in Mongolia. Rio will provide an immediate additional credit facility up to $1.5 billion to ensure construction isn’t delayed. Rio will also support the completion of a loan of $3 billion to $4 billion to be provided by third-party lenders. Ivanhoe plans a $1.8 billion share sale to repay the loan and an existing facility. The deal resolves issues over financing Oyu Tolgoi, which will be one of the world’s largest copper mines when it is complete. Capital spending on the project is seen by Ivanhoe at $2.1 billion in 2012. The company had $917.7 million of cash as of March 19. To read the full article, click hereIvanhoe, Rio Tinto ink funding deal on Mongolia copper mine

This entry was posted in Mongolia News. Bookmark the permalink.

Comments are closed.