Rio Tinto Increases Stake In Ivanhoe Mines To 51%

Rio Tinto PLC (RIO.LN), an international mining group, said Tuesday that it has taken a majority stake in Ivanhoe Mines Ltd, having purchased shares that take its interest to 51%.

MAIN FACTS:

-Rio Tinto purchased an additional 15.1 million common shares of Ivanhoe, representing 2% of Ivanhoe's outstanding common shares, from two sellers in a privately negotiated share purchase transaction.

-The shares were purchased for an aggregate of C$302 million at a price per share of C$20.00.

-After the completion of the share purchase, Rio Tinto will own 377,397,658 common shares of Ivanhoe representing 51% of Ivanhoe's outstanding common shares.

-Rio Tinto has anti-dilution rights that permit it to acquire additional Ivanhoe securities so as to maintain its proportional equity interest in Ivanhoe.

-Rio Tinto also has the right to acquire additional Ivanhoe securities under its equity financing right of first offer.

-Rio Tinto has no current intention to purchase additional securities of Ivanhoe.

-However, Rio Tinto reserves its right to seek opportunities to purchase additional securities of Ivanhoe depending upon its assessment of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions, and other factors.

-Rio Tinto also reserves its right to take any permitted action as the majority shareholder of Ivanhoe.

-Rio Tinto shares at 1450 GMT down 53 pence, or 1.4%, at 368 pence, valuing the company at GBP53.42 billion.

-By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; razak.baba@dowjones.com

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