An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Rio Tinto agrees revisions to funding arrangements with Turquoise Hill Resources
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Rio Tinto has revised its funding plan with Turquoise Hill Resources to provide up to $400 million in short-term advances while assessing an all-cash offer of C$34 per share for the remaining shares of Turquoise Hill. These advances will support the Oyu Tolgoi Underground Project's development in Mongolia and have a maturity date of 31 December, 2022. The timeframe for an initial equity offering of at least $650 million has also been extended to the end of 2022.
Positive
Rio Tinto's advance of up to $400 million aids Turquoise Hill's liquidity.
The funding supports ongoing development of the Oyu Tolgoi Underground Project.
Negative
The extension for the equity offering indicates potential financial strain on Turquoise Hill.
LONDON--(BUSINESS WIRE)--
Rio Tinto has agreed to amend the previously agreed funding plan with Turquoise Hill Resources (TRQ) (9 April, 2021) in order to provide liquidity of up to $400 million in short-term early advances, while the Special Committee of TRQ evaluates Rio Tinto’s C$34 per share all-cash proposal to acquire the approximately 49% of the issued and outstanding shares of TRQ that Rio Tinto does not currently own.
Subject to the satisfaction of certain minimum liquidity and other conditions, the early advances will be available at any time up to their maturity on 31 December, 2022, and enable TRQ to fund the ongoing development of the Oyu Tolgoi (OT) Underground Project in Mongolia. The deadline in the previously agreed funding plan for Turquoise Hill to conduct an initial equity offering of at least $650 million has also been extended from the end of August 2022 to the end of 2022.
Rio Tinto Canadian early warning disclosure
Rio Tinto currently beneficially owns 102,196,643 common shares of Turquoise Hill, representing approximately 51% of the issued and outstanding common shares of Turquoise Hill. Rio Tinto also has anti-dilution rights that permit it to acquire additional securities of Turquoise Hill so as to maintain its proportionate equity interest in Turquoise Hill from time to time.
This announcement is authorised for release to the market by, and a copy of the related early warning report may be obtained from, Rio Tinto’s Group Company Secretary.
The head office of Turquoise Hill is located at 1 Place Ville-Marie, Suite 3680, Montreal, Quebec, Canada H3B 3P2.
Additional disclosures
This press release does not constitute an offer to buy or sell or the solicitation of an offer to sell or buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with registration and other requirements under applicable law.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this release, are forward-looking statements. The words “intend”, “forecast”, “project”, “anticipate”, “estimate”, “plan”, “believes”, “expects”, “may”, “should”, “will”, “target”, “pursue”, “seek” or similar expressions, commonly identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Among the factors that could cause actual results to differ materially include, but are not limited to, those relating to whether any agreement will be executed, or whether this or any other transaction will be consummated. Rio Tinto expressly disclaims any obligation or undertaking (except as required by applicable law, the UK Listing Rules, the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and the Listing Rules of the Australian Securities Exchange) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. All information provided in this press release, including the forward-looking statements herein, speak only as of the date of this press release.
The person responsible for arranging the release of this announcement on behalf of Rio Tinto plc is Steve Allen, Group Company Secretary.
LEI: 213800YOEO5OQ72G2R82
Classification: 3.1 Additional regulated information required to be disclosed under the laws of a Member State.
This announcement is authorised for release to the market by Steve Allen, Rio Tinto’s Group Company Secretary.
Media Relations, UK Illtud Harri M +44 7920 503 600
David Outhwaite M +44 7787 597 493
Media Relations, Americas Matthew Klar T +1 514 608 4429
Investor Relations, UK Menno Sanderse M: +44 7825 195 178
David Ovington M +44 7920 010 978
Clare Peever M +44 7788 967 877
Rio Tinto plc 6 St James’s Square
London SW1Y 4AD
United Kingdom T +44 20 7781 2000
Registered in England No. 719885
Media Relations, Australia Jonathan Rose M +61 447 028 913
Matt Chambers M +61 433 525 739
Jesse Riseborough M +61 436 653 412
Investor Relations, Australia Amar Jambaa
M +61 472 865 948
Rio Tinto Limited Level 7, 360 Collins Street Melbourne 3000
Australia T +61 3 9283 3333
Registered in Australia ABN 96 004 458 404
Category: General
Source: Rio Tinto
FAQ
What is the funding plan amendment by Rio Tinto for Turquoise Hill Resources?
Rio Tinto amended its funding plan to provide up to $400 million in short-term advances to Turquoise Hill Resources.
What is the cash offer Rio Tinto has made for Turquoise Hill Resources shares?
Rio Tinto has proposed an all-cash offer of C$34 per share for the approximately 49% of Turquoise Hill Resources shares it does not already own.
What are the deadlines for the funding and equity offering related to Turquoise Hill?
The funding advances will mature on December 31, 2022, and the deadline for Turquoise Hill's initial equity offering has been extended to the end of 2022.
How many shares of Turquoise Hill does Rio Tinto currently own?
Rio Tinto owns approximately 102,196,643 common shares of Turquoise Hill, representing around 51% of the total outstanding shares.
