Turquoise Hill Shares Climb 14% After Offer Proposes to Mongolian Government
December 13 2021 - 11:59AM
Dow Jones News
By Adriano Marchese
Turquoise Hill Resources Ltd. shares soared on Monday after it
said that it has made an offer to the Government of Mongolia in
conjunction with Rio Tinto PLC which would see the erasure of loans
owing by a Mongolian-owned shareholder in a bid reset its
relationship with the country's government.
At 11:25 a.m. ET, shares gained 14% to C$21.25.
The Canadian mining company focused on the operation and
development of the Oyu Tolgoi copper-gold mine in southern Mongolia
said that the offer includes a proposal to forgive and write-off
the entirety of US$2.3 billion carry account loan owing by the
Mongolian-owned shareholder Erdenes Mongol LLC.
The company said that it would also cancel the underground mine
development and financing plan on a go-forward basis.
The deal goes back to 2009 when Rio Tinto and Turquoise signed a
long-term, comprehensive investment agreement with the Mongolian
government.
The agreement created a partnership between the Mongolian
government which acquired a 34% interest in the project, and
Turquoise Hill Resources, which retained a controlling 66% interest
in Oyu Tolgoi.
Turquoise Hill said that it remains committed to securing
approval to begin the undercut as quickly as possible following the
entering into of a definitive agreement among the parties.
"The offer follows on months of discussions between Turquoise
Hill, Rio Tinto and the Government of Mongolia to understand the
Government's issues and priorities, deliver greater economic value
to Mongolia and build a stronger partnership for a prosperous
future for all," the company said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
December 13, 2021 11:44 ET (16:44 GMT)
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