Ivanhoe Mines and Rio Tinto Approve Agreement to Provide Funding to Oyu Tolgoi Copper-Gold Complex

Ivanhoe Mines IVN and Rio Tinto RIO have reached a comprehensive agreement covering a series of measures intended to provide funding to complete the accelerated, full-scale construction of the first phase of the Oyu Tolgoi copper-gold complex in southern Mongolia, Ivanhoe Mines' Office of the Chairman announced today. The full series of funding measures, including an interim funding facility from Rio Tinto and cash on hand available to Ivanhoe Mines, could increase to US$6.5 billion the pool of development capital available to Ivanhoe to bring Oyu Tolgoi into full production and also to finance associated investments. As part of the new agreement, Rio Tinto has committed to participate directly in several funding measures - including the forthcoming rights offering announced by Ivanhoe Mines on October 18 - that could generate up to US$4.4 billion of the potential US$6.5 billion. In addition, Rio Tinto has agreed to work closely with Ivanhoe Mines to complete a major project-finance package that Ivanhoe is negotiating with a group of international financial institutions, government credit agencies and commercial banks.