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 jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

April 09, 2021 02:30 ET (06:30 GMT)

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