Bloomberg: Ivanhoe CEO Resigns as Rio Commits to Mongolia Mine Funds

Billionaire Robert Friedland resigned as chief executive officer of Ivanhoe Mines Ltd. as the company struck a deal with its majority shareholder Rio Tinto Group on funding for its $6 billion Mongolian copper mine. Rio, which boosted its stake in Ivanhoe to 51 percent in January, will provide an immediate credit facility of as much as $1.5 billion to ensure construction at Oyu Tolgoi isn’t interrupted, Vancouver-based Ivanhoe said yesterday in a statement. Rio also will support the completion of a syndicated loan of $3 billion to $4 billion. Ivanhoe plans a $1.8 billion rights offer to repay the facility and a previous loan. The accord, announced in tandem with the resignation of Friedland and other top executives, may foreshadow Rio’s acquisition of the Ivanhoe shares it doesn’t own, said Adam Graf, a New York-based analyst at Dahlman Rose & Co. To read the full article, click hereIvanhoe CEO Resigns as Rio Commits to Mongolia Mine Funds

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