Ivanhoe files counter-claims in dispute with Rio
* Ivanhoe says Rio breached terms of private placement deal
* Arbitration hearings scheduled for early 2011 (In U.S. dollars unless noted)
TORONTO Oct 26 (Reuters) - Ivanhoe Mines (IVN.TO: Quote) said on Tuesday it has filed counter-claims against Rio Tinto (RIO.AX: Quote), in relation to an arbitration process that was launched by the Anglo-Australian miner earlier this year.
Vancouver-based Ivanhoe and Rio are developing the nearly $5 billion Oyu Tolgoi copper-gold project Mongolia. The long-delayed project finally got a go-ahead from Mongolian authorities in October 2009, following years of negotiations. [ID:nSP495396]
The two companies have been locked in a dispute over a shareholder rights plan adopted by Ivanhoe in May. Rio, which owns roughly 35 percent of Ivanhoe's outstanding shares, alleges that the plan is in breach of its contractual rights. [ID:nSGE66B0JD]
Ivanhoe rejects Rio Tinto's claim that the rights plan, approved by Ivanhoe's shareholders on May 7, breaches Rio Tinto's contractual rights.
The Canadian exploration company has also counter-claimed that Rio itself breached the terms of their private placement agreement by engaging in activities that could affect the control of Ivanhoe without the company's permission.
Earlier this year in a securities filing, Rio said its minority shareholder Chinalco had indicated an interest in acquiring a minority equity stake in Ivanhoe. [ID:nLDE665187]
Ivanhoe and Rio have both stated that the arbitration proceedings will not hamper the development of the Oyu Tolgoi project.
An independent arbitrator has scheduled hearings on the claim and counter-claim between Jan. 18 and Feb. 5, 2011. (Reporting by Euan Rocha; editing by Rob Wilson)
* Arbitration hearings scheduled for early 2011 (In U.S. dollars unless noted)
TORONTO Oct 26 (Reuters) - Ivanhoe Mines (IVN.TO: Quote) said on Tuesday it has filed counter-claims against Rio Tinto (RIO.AX: Quote), in relation to an arbitration process that was launched by the Anglo-Australian miner earlier this year.
Vancouver-based Ivanhoe and Rio are developing the nearly $5 billion Oyu Tolgoi copper-gold project Mongolia. The long-delayed project finally got a go-ahead from Mongolian authorities in October 2009, following years of negotiations. [ID:nSP495396]
The two companies have been locked in a dispute over a shareholder rights plan adopted by Ivanhoe in May. Rio, which owns roughly 35 percent of Ivanhoe's outstanding shares, alleges that the plan is in breach of its contractual rights. [ID:nSGE66B0JD]
Ivanhoe rejects Rio Tinto's claim that the rights plan, approved by Ivanhoe's shareholders on May 7, breaches Rio Tinto's contractual rights.
The Canadian exploration company has also counter-claimed that Rio itself breached the terms of their private placement agreement by engaging in activities that could affect the control of Ivanhoe without the company's permission.
Earlier this year in a securities filing, Rio said its minority shareholder Chinalco had indicated an interest in acquiring a minority equity stake in Ivanhoe. [ID:nLDE665187]
Ivanhoe and Rio have both stated that the arbitration proceedings will not hamper the development of the Oyu Tolgoi project.
An independent arbitrator has scheduled hearings on the claim and counter-claim between Jan. 18 and Feb. 5, 2011. (Reporting by Euan Rocha; editing by Rob Wilson)
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