Rio Tinto buys 10 million shares of Vancouver’s Ivanhoe mines at $25.35 per share
VANCOUVER, B.C. – Mining giant Rio Tinto (RIO) bought 10,000,000 common shares of Vancouver-based mining company Ivanhoe Mines Ltd. (IVN) from the company’s director Robert M. Friedland as the two companies start collaborating in bringing into production a colossal copper-gold mine in Mongolia with unheard of reserves of copper and gold – enough to keep the mine in business for 60 years.
According to an announcement made by Friedland, who is CEO and executive chairman of Ivanhoe, Rio paid $25.35 USD for the common shares sold by Friedland who owns 18.2 per cent of Ivanhoe.
The announcement that Friedland sold 10 million shares comes on the heels of an agreement to move full speed on the development of a colossal Oyu Tolgoi Copper-Gold Complex in Mongolia said to hold one of the largest copper-gold deposits in the world.
Oyu Tolgoi has reserves of 37 million tonnes of copper and 1,300 tonnes of gold in measured, indicated and inferred resources, allowing the project to operate for almost 60 years.
Both companies previously said they have reached an agreement to proceed with financing the project to bring it into production by 2012. The mining project is owned in the majority by Ivanhoe and a minority share is owned by the government of Mongolia.
“Mr. Friedland is the Executive Chairman and Chief Executive Officer of Ivanhoe,” Friedland said in an announcement from Singapore.
“As at the date of this news release, Mr. Friedland owns, directly and indirectly, an aggregate 96,881,622 Ivanhoe common shares, representing approximately 18.2% of Ivanhoe’s issued common shares, and options entitling him to purchase an additional 1,750,000 common shares. Assuming exercise of the options, he will own a total of 98,631,622 common shares, or 18.5% of Ivanhoe’s issued and outstanding common shares on a post-conversion, beneficial ownership basis.”
“Upon completion of this transaction Mr. Friedland will own, directly and indirectly, an aggregate 86,881,622 Ivanhoe common shares, representing approximately 16.3% of Ivanhoe’s issued common shares, and options entitling him to purchase 1,750,000 common shares of Ivanhoe. Assuming exercise of the options, he will own a total of 88,631,622 common shares, or 16.6% of Ivanhoe’s issued and outstanding common shares on a post-conversion beneficial ownership basis.”
Friedland has previously announced that he will participate in Ivanhoe’s rights offering to the maximum extent permitted to maintain his level of ownership after completion of the rights offering.
In addition, Friedland also has announced that he may use proceeds that he receives from the sale of RMF Shares to RTIH to help him finance the potential acquisition of any rights that may become available in the secondary market during the rights offering subscription period.
Rio Tinto said in a statement issued in the U.K. that it has increased its stake in ownership of Ivanhoe and will also manage the production and construction of the gigantic mining project in Mongolia.
According to Rio: “Full-scale construction at the Oyu Tolgoi copper and gold mine in Mongolia (owned 66 per cent by Ivanhoe Mines and 34 per cent by the Government of Mongolia) is progressing ahead of schedule with first production now forecast to commence in late 2012.
A copper concentrator plant, related facilities and necessary infrastructure supporting an initial throughput of 100,000 tonnes of ore per day are being constructed on site to process mined ore. By 2017, an expansion of the concentrator is expected to be completed in conjunction with the ramping up of the Hugo North underground mine. This will provide capacity to process 160,000 tonnes of ore per day for the duration of the operation.
Independently verified estimates indicate that Oyu Tolgoi contains approximately 37 million tonnes of copper and 1,300 tonnes of gold in measured, indicated and inferred resources, allowing the project to operate for almost 60 years. There are currently more than 5,500 workers on site and the project is expected to result in the training and employment of thousands more Mongolian workers over the project’s expected life.
After the completion of the purchase of a total of 20 million shares from Mr. Friedland and Citibank and the subscription for 33,783,784 shares from Ivanhoe upon the exercise of US$300 million of its Series B warrants, Rio Tinto will have increased its ownership by 7.4 per cent and own 239,251,843 common shares of Ivanhoe representing 42.3 per cent of Ivanhoe’s outstanding common shares. Upon the exercise all of its remaining share purchase warrants, Rio Tinto will own 287,214,784 common shares of Ivanhoe
representing 46.8 per cent of Ivanhoe’s outstanding common shares. If Rio Tinto were then fully to exercise its Subscription Right, it would own approximately 306,828,533 common shares of Ivanhoe representing 48.4 per cent of Ivanhoe’s outstanding common shares.”
According to an announcement made by Friedland, who is CEO and executive chairman of Ivanhoe, Rio paid $25.35 USD for the common shares sold by Friedland who owns 18.2 per cent of Ivanhoe.
The announcement that Friedland sold 10 million shares comes on the heels of an agreement to move full speed on the development of a colossal Oyu Tolgoi Copper-Gold Complex in Mongolia said to hold one of the largest copper-gold deposits in the world.
Oyu Tolgoi has reserves of 37 million tonnes of copper and 1,300 tonnes of gold in measured, indicated and inferred resources, allowing the project to operate for almost 60 years.
Both companies previously said they have reached an agreement to proceed with financing the project to bring it into production by 2012. The mining project is owned in the majority by Ivanhoe and a minority share is owned by the government of Mongolia.
“Mr. Friedland is the Executive Chairman and Chief Executive Officer of Ivanhoe,” Friedland said in an announcement from Singapore.
“As at the date of this news release, Mr. Friedland owns, directly and indirectly, an aggregate 96,881,622 Ivanhoe common shares, representing approximately 18.2% of Ivanhoe’s issued common shares, and options entitling him to purchase an additional 1,750,000 common shares. Assuming exercise of the options, he will own a total of 98,631,622 common shares, or 18.5% of Ivanhoe’s issued and outstanding common shares on a post-conversion, beneficial ownership basis.”
“Upon completion of this transaction Mr. Friedland will own, directly and indirectly, an aggregate 86,881,622 Ivanhoe common shares, representing approximately 16.3% of Ivanhoe’s issued common shares, and options entitling him to purchase 1,750,000 common shares of Ivanhoe. Assuming exercise of the options, he will own a total of 88,631,622 common shares, or 16.6% of Ivanhoe’s issued and outstanding common shares on a post-conversion beneficial ownership basis.”
Friedland has previously announced that he will participate in Ivanhoe’s rights offering to the maximum extent permitted to maintain his level of ownership after completion of the rights offering.
In addition, Friedland also has announced that he may use proceeds that he receives from the sale of RMF Shares to RTIH to help him finance the potential acquisition of any rights that may become available in the secondary market during the rights offering subscription period.
Rio Tinto said in a statement issued in the U.K. that it has increased its stake in ownership of Ivanhoe and will also manage the production and construction of the gigantic mining project in Mongolia.
According to Rio: “Full-scale construction at the Oyu Tolgoi copper and gold mine in Mongolia (owned 66 per cent by Ivanhoe Mines and 34 per cent by the Government of Mongolia) is progressing ahead of schedule with first production now forecast to commence in late 2012.
A copper concentrator plant, related facilities and necessary infrastructure supporting an initial throughput of 100,000 tonnes of ore per day are being constructed on site to process mined ore. By 2017, an expansion of the concentrator is expected to be completed in conjunction with the ramping up of the Hugo North underground mine. This will provide capacity to process 160,000 tonnes of ore per day for the duration of the operation.
Independently verified estimates indicate that Oyu Tolgoi contains approximately 37 million tonnes of copper and 1,300 tonnes of gold in measured, indicated and inferred resources, allowing the project to operate for almost 60 years. There are currently more than 5,500 workers on site and the project is expected to result in the training and employment of thousands more Mongolian workers over the project’s expected life.
After the completion of the purchase of a total of 20 million shares from Mr. Friedland and Citibank and the subscription for 33,783,784 shares from Ivanhoe upon the exercise of US$300 million of its Series B warrants, Rio Tinto will have increased its ownership by 7.4 per cent and own 239,251,843 common shares of Ivanhoe representing 42.3 per cent of Ivanhoe’s outstanding common shares. Upon the exercise all of its remaining share purchase warrants, Rio Tinto will own 287,214,784 common shares of Ivanhoe
representing 46.8 per cent of Ivanhoe’s outstanding common shares. If Rio Tinto were then fully to exercise its Subscription Right, it would own approximately 306,828,533 common shares of Ivanhoe representing 48.4 per cent of Ivanhoe’s outstanding common shares.”
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