Rio Tinto Completes Second Tranche Of Ivanhoe Investment

Rio Tinto PLC (RIO.LN), a resources company, said Wednesday that it has completed the second tranche of its investment in Ivanhoe Mines Ltd. (IVN) increasing its ownership by 9.8% to 19.7% of Ivanhoe's common shares.

MAIN FACTS:

-The second tranche consists of 46,304,473 common shares at a subscription price of $8.38 per share for a total consideration of $388.03 million.

-If Rio Tinto were to exercise and convert all of its remaining warrants and securities of Ivanhoe, it would own 257,931,578 common shares of Ivanhoe representing 43.1% of Ivanhoe's common shares.

-Rio Tinto has no present intention of acquiring other securities of Ivanhoe, except as regards its right to acquire additional securities so as to maintain its proportional equity interest in the future, or of disposing of any of the securities of Ivanhoe which it holds.

-Depending upon its evaluation of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions and other factors, Rio Tinto may acquire additional securities of Ivanhoe or sell some or all of the securities it holds.

 
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; [phone]; [e-mail]