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BRIEF-Rio Tinto Says Reached Agreement With Turquoise Hill On Oyu Tolgoi Financing Plan

Published 2021-04-09, 02:21 a/m
© Reuters.
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April 9 (Reuters) - Rio Tinto (LON:RIO) Ltd RIO.AX :

* RIO TINTO AND TRQ AGREE FINANCING PLAN FOR OT

* ENTERED INTO A BINDING HOA WITH TURQUOISE HILL RESOURCES FOR AN UPDATED FUNDING PLAN FOR OYU TOLGOI

* FUNDING PLAN ADDRESSES ESTIMATED REMAINING KNOWN FUNDING REQUIREMENT OF APPROXIMATELY $2.3 BILLION

* RIO TINTO AND TRQ HAVE AGREED TO JOINTLY OBTAIN AN ORDER DISMISSING CURRENT ARBITRATION ON A WITHOUT PREJUDICE BASIS,

* TRQ HAS COMMITTED TO COMPLETE A RIGHTS OFFERING OR PLACEMENT OF COMMON SHARES FOR UP TO $500 MILLION TO SATISFY ANY REMAINING FUNDING SHORTFALL

* CO & TRQ SEEK TO RAISE UP TO $500 MILLION IN SENIOR SUPPLEMENTAL DEBT UNDER EXISTING PROJECT FINANCING ARRANGEMENTS

* CO & TRQ WILL PURSUE RE-PROFILING OF PRINCIPAL DEBT REPAYMENTS UP TO $1.4 BLN WITH LENDERS UNDER EXISTING PROJECT FINANCE ARRANGEMENTS

* COMMITTED TO ADDRESS ANY POTENTIAL SHORTFALLS FROM RE-PROFILING AND ADDITIONAL SSD OF UP TO $750 MLN VIA CO-LENDING FACILITY

* EXCEPT IN CONNECTION WITH ANY EQUITY OFFERING, CO HAS NO PRESENT INTENTION OF ACQUIRING ADDITIONAL SECURITIES OF TRQ

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