Ivanhoe CEO Friedland Resigns as Rio Agrees on Mine Financing
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Billionaire Robert Friedland resigned as chief executive officer of Ivanhoe Mines Ltd. as the company struck a deal with its majority shareholder Rio Tinto Group on funding for its $6 billion Mongolian copper mine.
Rio, which boosted its stake in Ivanhoe to 51 percent in January, will provide an immediate credit facility of as much as $1.5 billion to ensure construction at Oyu Tolgoi isn’t interrupted, Vancouver-based Ivanhoe said yesterday in a statement. Rio also will support the completion of a syndicated loan of $3 billion to $4 billion. Ivanhoe plans a $1.8 billion rights offer to repay the facility and a previous loan.