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Turquoise Hill successfully completes $2.4bn rights offering

Oyu Tolgoi

Oyu Tolgoi

Photo by Rio Tinto

8th January 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Vancouver-based miner Turquoise Hill Resources on Wednesday announced that it had completed its $2.4-billion rights offering that expired on Tuesday.

Turquoise Hill said it intended to use the net proceeds from the rights offering to repay all amounts that were outstanding under its $1.8-billion interim funding facility and its secured $600-million bridge facility with parent company Rio Tinto, and to use any remaining proceeds to fund the Oyu Tolgoi copper/gold project, in Mongolia, for working capital, general administrative expenses and other corporate expenses.

Based on the preliminary results, Turquoise Hill expected to issue about one-billion common shares through the rights offering, which were the maximum number of common shares available under the rights offering.

Rio Tinto exercised all its rights issued to it in the offering.

Turqoise Hill's TSX-listed stock traded 5% higher at C$3.70 apiece early on Wednesday afternoon, having fallen 60% in the past year.

Edited by Creamer Media Reporter

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