Ivanhoe Mines Down 3.5% As Rio Tinto Raises Its Stake
Rio Tinto is raising its stake in Ivanhoe Mines (IVN.TO) by a further 2% by exercising its right to acquire shares in the exploration company led by well known mining financier Robert Friedland, Reuters reported.
The Anglo-Australian mining giant said on Wednesday it now owns 48.5% of Ivanhoe common shares. Ivanhoe is down 3.5% at $19.88, having earlier touched a day low $19.20.
Rio Tinto has a right to boost its stake in Ivanhoe to up to 49%, under an existing deal between the two companies that are jointly developing the massive Oyu Tolgoi copper-gold project in Mongolia, Reuters said.
Rio Tinto said it would consider buying additional shares of Ivanhoe, depending on general economic conditions, Ivanhoe's business prospects and other factors, the report added.
Ivanhoe will issue 27.9 million new shares to a wholly-owned subsidiary of Rio Tinto. The price paid per share was $18.98 for a total consideration of $529.5 million, Rio Tinto said in a statement.
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