Rio Tinto Secures Controlling Interest of Ivanhoe Mines and Agrees to Provide Support for Ivanhoe Mines’ US$7.3 Billion Comprehensive Financing Plan for Oyu Tolgoi Copper/Gold Project in Mongolia
|Areas||Corporate Finance and Securities, Mining and Natural Resources, Project (PPP) Finance|
Goodmans represented Ivanhoe Mines in connection with the negotiation of a US$7.3 billion comprehensive financing plan in which Rio Tinto International Holdings Limited, Rio Tinto South East Asia Limited and Ivanhoe Mines Ltd. entered into an agreement whereby Rio Tinto agreed to provide financial support for Ivanhoe Mines' comprehensive financing plan for the near-term development to commercial production and future expansion of Ivanhoe Mines’ Oyu Tolgoi copper-gold project in Mongolia. The primary elements of the financing plan are:
- a US$3 to 4 billion project financing for Oyu Tolgoi to be provided by third party lenders with a completion support guarantee to be provided by Rio Tinto;
- a US$1.8 billion rights offering by Ivanhoe to be fully-backstopped by Rio Tinto; and
- a US$1.5 billion short-term bridge facility to be provided by Rio Tinto.
The agreement also provided for a major restructuring of the Board of Directors and management team of Ivanhoe Mines to reflect the acquisition of a 51% controlling interest in Ivanhoe Mines by Rio Tinto in January 2012.