Published: May 31, 2022 |

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Turquoise Hill Resources is set to get an interim debt funding of up to $400 million from Rio Tinto for addressing the former’s estimated funding requirements in the near term.

The parties have also agreed to extend the date by which Turquoise Hill has to raise additional equity capital of $650 million from the end of August 2022 to the end of the year.

In March 2022, Rio Tinto made a non-binding offer to acquire the nearly 49 percent stake it did not own already in Turquoise Hill in a deal worth around $2.7 billion. In response to the bid, the latter’s board of directors formed a special committee of independent directors to review and consider it.

The special committee is responsible for considering Turquoise Hill’s liquidity needs and financing options pending its consideration of the proposal from Rio Tinto.

Rio Tinto had put a condition in its proposal that Turquoise Hill should not raise additional equity capital. In this connection, Rio Tinto invited Turquoise Hill to propose terms for an interim funding facility that would meet the latter’s funding requirements pending the consideration of the takeover proposal.

“The proposal remains non-binding in nature. There can be no assurance that a transaction will result from the proposal, and, if a transaction does result, whether and when such transaction will be completed or on what terms,” Turquoise Hill stated.

Based in Canada, Turquoise Hill has a stake of 66 percent in the Oyu Tolgoi copper-gold mine in Mongolia. It is partnered by Mongolian state-owned Erdenes Oyu Tolgoi in the copper-gold mine.

According to Rio Tinto, its interim debt funding will help in funding the ongoing development of the Oyu Tolgoi underground project.

Source: NS Energy

About Rio Tinto
Rio Tinto is a mining and metals company operating in 35 countries around the world. Its purpose is to produce the materials essential to human progress. Their four product groups bring this purpose to life: aluminium, copper, minerals, and iron ore. These are complemented by their safety, technical and projects, strategy and development, and commercial groups, as well as its service and support functions.

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