Rio Tinto, Turquoise Agree to New Funding Plan for Oyu Tolgoi Copper Project in Mongolia
By Jaime Llinares Taboada
Rio Tinto PLC said Friday that it has entered into a binding
agreement with Turquoise Hill Resources Ltd. for an updated funding
plan for the completion of the Oyu Tolgoi underground copper
project in Mongolia.
The FTSE 100 mining company said the funding plan addresses the
remaining funding requirements of $2.3 billion, replacing the
previous deal agreed in September 2020.
Under this new binding heads of agreement, Rio Tinto and
Turquoise will pursue re-profiling of principal debt repayments up
to $1.4 billion with lenders to better align with the revised mine
plan, project timing and cash flows. In addition, they will seek to
raise up to $500 million in senior supplemental debt.
Rio Tinto said it has committed to address any potential
shortfalls from the re-profiling and additional supplemental debt
of up to $750 million; whereas Turquoise has committed to raise up
to $500 million via rights offering or shares placement.
Write to Jaime Llinares Taboada at email@example.com;
(END) Dow Jones Newswires
April 09, 2021 02:30 ET (06:30 GMT)
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