Rio Tinto has agreed to amend a previously agreed funding plan with Turquoise Hill Resources (TRQ), in order to provide liquidity of up to US$400 million in short-term early advances, while the Special Committee of TRQ evaluates its CAN$34 per share all-cash proposal to acquire the approximately 49% of the issued and outstanding shares of TRQ that it does not currently own.
Subject to the satisfaction of certain minimum liquidity and other conditions, the early advances will be available at any time up to their maturity on 31 December, 2022, and enable TRQ to fund the ongoing development of the Oyu Tolgoi (OT) Underground Project in Mongolia. The deadline in the previously agreed funding plan for TRQ to conduct an initial equity offering of at least US$650 million has also been extended from the end of August 2022 to the end of 2022.
Rio Tinto currently beneficially owns approximately 102.19 million common shares of TRQ, representing approximately 51% of the issued and outstanding common shares of TRQ. Rio Tinto also has anti-dilution rights that permit it to acquire additional securities of TRQ so as to maintain its proportionate equity interest in TRQ from time to time.
Read the article online at: https://www.globalminingreview.com/mining/20052022/rio-tinto-agrees-funding-arrangement-revisions-with-turquoise-hill-resources/