Ivanhoe chief locked in for Mongolia mine
RIO Tinto's grasp on Ivanhoe Mines and the $US6 billion Oyu Tolgoi copper and gold project in Mongolia has substantially tightened.
In the latest agreement between the two companies, Ivanhoe executive chairman Robert Friedland has been banned from selling his Ivanhoe shares without Rio's permission.
Agreements signed last week between the pair mean Rio can move to a 49 per cent stake in Ivanhoe and will take over management of the giant mine, in return for $US3.7bn of mine funding commitments.
The full agreements show Mr Friedland has agreed he will not directly or indirectly transfer any of his or his affiliates' securities, except for some limited exceptions, before January 18, 2012, without Rio's written consent.
He has also agreed to grant Rio a right of first refusal and/or rights of placement with third parties in a transfer of his securities to a third party.
Rio, with 35 per cent, and Mr Friedland, with 18.2 per cent, are Ivanhoe's two biggest shareholders.
While having signed an agreement to manage Oyu Tolgoi, Rio does not have direct ownership in the project -- 66 per cent owned by Ivanhoe.
The heads of agreement also shows Ivanhoe is unable to use the proceeds from a sale of any of its other assets, which include a 62 per cent stake in Ivanhoe Australia, to acquire new assets or fund existing projects other than Oyu Tolgoi or the Altynalmas gold project in Kazakhstan.
In the latest agreement between the two companies, Ivanhoe executive chairman Robert Friedland has been banned from selling his Ivanhoe shares without Rio's permission.
Agreements signed last week between the pair mean Rio can move to a 49 per cent stake in Ivanhoe and will take over management of the giant mine, in return for $US3.7bn of mine funding commitments.
The full agreements show Mr Friedland has agreed he will not directly or indirectly transfer any of his or his affiliates' securities, except for some limited exceptions, before January 18, 2012, without Rio's written consent.
He has also agreed to grant Rio a right of first refusal and/or rights of placement with third parties in a transfer of his securities to a third party.
Rio, with 35 per cent, and Mr Friedland, with 18.2 per cent, are Ivanhoe's two biggest shareholders.
While having signed an agreement to manage Oyu Tolgoi, Rio does not have direct ownership in the project -- 66 per cent owned by Ivanhoe.
The heads of agreement also shows Ivanhoe is unable to use the proceeds from a sale of any of its other assets, which include a 62 per cent stake in Ivanhoe Australia, to acquire new assets or fund existing projects other than Oyu Tolgoi or the Altynalmas gold project in Kazakhstan.
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