Ivanhoe Mines to Receive $536M From Rio Tinto's Exercise of Subscription Right
Ivanhoe Mines'(NASDAQ: IVN) Chief Executive Officer Robert Friedland confirmed today that Rio Tinto has exercised its subscription right to acquire an additional 27,896,570 common shares of Ivanhoe Mines.
The acquisition will generate total proceeds of C$529,476,898 for Ivanhoe Mines and raise Rio Tinto's interest in Ivanhoe Mines from 46.5% to 48.5%. The price paid per share was C$18.98, the five-day volume weighted average share price on the Toronto Stock Exchange. The subscription right exercise was made in accordance with terms of the December 2010 Heads of Agreement between Ivanhoe Mines and Rio Tinto.
With the receipt of the proceeds from the subscription right, Ivanhoe Mines' cash position, on a consolidated basis, will total approximately US$1.7 billion.
