Regions

Rio Tinto Ltd has bought C$1.29 billion (A$1.32 billion) worth of shares in Canada-based mining firm Turquoise Hill Resources. The purchase was made under a rights offering. Rio Tinto, however, has maintained its present stake in Turquoise Hill, according to Business Spectator.

Based on a statement made to the Australian Securities Exchange, Rio Tinto maintained its shareholding at 50.8% after the completion of the rights offering yesterday and was fully subscribed, the report detailed.

Under the terms of the deal, Rio Tinto took 510,983,220 shares in Turquoise Hill, its subsidiary. The said shares were bought at C$2.53 apiece, the report said.

Turquoise Hill plans to use a portion of the proceeds from the sale to repay amounts outstanding under the interim funding facility worth $1.8 billion (A$2 billion). The Canadian firm will also repay the $600 million secured bridge funding facility that was provided by Rio Tinto, the report explained.

According to Rio Tinto, the extra shares purchase was made to comply with its contractual obligations. The company currently has no plans of acquiring more shares in its subsidiary, Business Spectator reported.