Ivanhoe Mines and Rio Tinto Sign Funding Package Agreement for Mongolia Mine
Vancouver-based Ivanhoe Mines Ltd. and UK-based Rio Tinto have signed an agreement under which Rio Tinto has agreed to support and provide certain elements of a comprehensive funding package for Ivanhoe that will underpin the development of the Oyu Tolgoi copper-gold mine in Mongolia. The comprehensive financing package, together with the proceeds from any potential future asset sales by Ivanhoe, are intended to cover Ivanhoe’s total funding needs to complete the development of Oyu Tolgoi. Rio Tinto will provide a standby commitment for the full amount of a US$1.8 billion rights offering by Ivanhoe. Rio Tinto will also provide US$1.5 billion of bridge financing to Ivanhoe. Rio Tinto focuses on finding, mining and processing mineral resources.