Ivanhoe Mines Ltd. (IVN) doesn't believe its shareholder rights
plan breaches any of Rio Tinto plc's (RTP) existing contractual
rights and said it will continue to support the plan in the
arbitration proceeding initiated by Rio Tinto Friday.
Rio Tinto, which owns 29.6% of Canadian miner Ivanhoe, claims
the shareholder rights plan breaches some of its rights under an
October 2006 private-placement agreement between the companies.
Ivanhoe said nothing in the private-placement agreement prohibits
it from implementing a shareholder rights plan.
Ivanhoe's shareholder rights plan, adopted in April, restricts
shareholders and other third parties from acquiring additional
Ivanhoe shares beyond amounts provided for in existing contractual
arrangements, unless an offer is made to all shareholders.
Rio Tinto voted against the rights plan, but the plan was
approved by a majority of shareholders that voted at a May 7
meeting.
David Huberman, lead independent director of Ivanhoe and
chairman of its corporate-governance committee, said the company
values its relationship with Rio Tinto and plans to continue to
work with the global diversified miner to bring the Oyu Tolgoi mine
into production in 2013. Rio Tinto is the operator of the Mongolian
Oyu Tolgoi copper project, one of the world's largest untapped
copper and gold deposits, in which Ivanhoe has a 66% stake.
-By Judy McKinnon, Dow Jones Newswires; 416-306-2100;
judy.mckinnon@dowjones.com