Resources giant Rio Tinto has used the recent market weakness to lift its stake in Canadian miner Ivanhoe Mines to the planned 49% level it agreed to with Ivanhoe several years ago.
Rio told the ASX yesterday that it had acquired an additional 3.7 million shares in the Toronto-listed Ivanhoe.
The purchase – bought for $C73,075,000 ($A72,537,047) at a price per share of $C19.75 – increases Rio Tinto’s ownership by half a per cent.
It is the current maximum permitted shareholding in Ivanhoe Mines.
The two companies are involved in a joint venture to develop the massive $US4.5 billion ($4.6 billion) Oyu Tolgoi copper, gold and silver project in the Gobi Desert in Mongolia.
Commercial output is slated to start in the first half of 2013.
Rio said in the statement yesterday that the purchase "was made on behalf of Rio Tinto by Credit Suisse under an irrevocable mandate given by Rio Tinto to Credit Suisse on August 24, 2011.
"The mandate gave Credit Suisse the irrevocable authority to purchase 0.5 per cent of the outstanding common shares of Ivanhoe on the secondary market at any time for a period of 30 days, without further instruction from Rio Tinto.
"The purchase was executed on 22 September 2011 and settled on 26 September 2011.
"The acquisition of Ivanhoe shares was made in compliance with existing contractual arrangements between Rio Tinto and Ivanhoe Mines that permits share purchases in certain circumstances and subject to certain limits.
"Under the terms of these agreements and subject to certain exceptions, Rio Tinto’s current maximum permitted shareholding in Ivanhoe Mines is 49 per cent," Rio said in the statement.
