LONDON--(BUSINESS WIRE)--Rio Tinto announced today an update in respect of its beneficial ownership of common shares of Entr�e Resources Ltd. (�Entr�e�) held by its wholly owned subsidiary Rio Tinto International Holdings Limited (�RTIH�).
As a result of its greater than 50% shareholding in Turquoise Hill Resources Ltd. (�TRQ�), Rio Tinto is deemed to beneficially own the common shares of Entr�e owned by TRQ under applicable Canadian securities law.
Under a non-brokered private placement previously announced by Entr�e, on 14 September 2020, (i) RTIH acquired 875,000 units, at a price of C$0.43 per unit, comprising 870,000 common shares of Entree and warrants to acquire an additional 437,500 common share of Entr�e and (ii) TRQ acquired 740,000 units, at a price of C$0.43 per unit, comprising 740,000 common shares of Entr�e and warrants to acquire an additional 370,000 common share of Entr�e. The warrants are exercisable at a price of C$0.60 per common share of Entr�e for a period of three years.
Immediately prior to the private placement, Rio Tinto beneficially owned 30,366,129 common shares of Entr�e (16,566,796 common shares held by RTIH and 13,799,333 common shares held by TRQ), representing approximately 17.3% of the issued and outstanding common shares of Entr�e. Since the date of Rio Tinto�s last early warning report in 2012 in respect of the common shares of Entr�e, Rio Tinto�s security holding percentage in the common shares of Entr�e decreased by approximately 6.3% from approximately 23.6% to approximately 17.3% as a result of common share issuances by Entr�e.
Immediately following the private placement, Rio Tinto beneficially owned 31,981,129 common shares of Entr�e, representing approximately 17.2% of the issued and outstanding common shares of Entr�e (based on there being 185,748,074 common shares of Entr�e issued and outstanding) and a decrease of approximately 0.1%. If Rio Tinto were to exercise all of the warrants acquired by it, Rio Tinto could beneficially own approximately up to 17.6% of the issued and outstanding common shares of Entr�e.
Rio Tinto�s participation in the private placement was made for investment purposes and is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 � Protection of Minority Security Holders in Special Transactions � based on the fact that neither the fair market value of the units subscribed for by insiders of Entree, nor the consideration paid by insiders of Entr�e for the units, would exceed 25% of Entr�e�s market capitalization.
Rio Tinto has no present intention of acquiring additional securities of Entr�e. Depending upon its evaluation of the business, prospects and financial condition of Entr�e, the market for Entr�e�s securities, general economic and tax conditions and other factors, Rio Tinto may directly or indirectly acquire or sell some or all of the securities of Entr�e.
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Menno Sanderse
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Natalie Worley
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Amar Jambaa
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M +61 472 865 948
Rio Tinto plc
6 St James�s Square
London SW1Y 4AD
United Kingdom
T +44 20 7781 2000
Registered in England
No. 719885
Rio Tinto Limited
Level 7, 360 Collins Street
Melbourne 3000
Australia
T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404
Category: Oyu Tolgoi
