Mining giant Rio Tinto ( RIO ) announced on Thursday that it has extended its offer to purchase Hathor Exploration shares to 5 p.m. of Jan 6, 2012. The offer, made through an indirect wholly-owned Rio subsidiary in Canada, is for C$4.70 in cash per common share.
The extension is to allow the remaining Hathor stockholders to sell their shares to Rio Tinto which has, as of Dec 22, purchased 111.17 million common shared and validly tendered. The volume is 87.26 per cent of outstanding Hathor common shares.
Rio said it would pay for all common shares within three business days of take-up. After the deadline, Rio would still take up all common shares validly tendered and not withdrawn on a daily basis.
"Shareholders are advised that the administrative procedure established by brokers and other intermediaries may cause a delay in their ability to accept tender instructions following this extension of Rio Tinto's offer, however Rio Tinto understands that all such intermediaries should be able to process tenders of Hathor common shares from and after 29 December 2011," the company said in a statement.
Rio has more than 13,400 mine workers in Canada which includes mining and manufacturing interests in alumina, aluminium, iron ore, diamonds and titanium dioxide. It also runs exploration activities, research and development centres, port and rail facilities to support various businesses, technical and sales service centre, and substantial hydroelectric power facilities in British Columbia and Quebec.