Turquoise Hill plans rights offering for Oyu Tolgoi

Turquoise Hill Resources (TRQ -7.1%) sinks at the open on plans for a new rights offering to fund expansion of the Oyu Tolgoi mine, citing uncertainty around talks with the Mongolian government that has delayed financing.

TRQ says discussions with the government are continuing in order to reach agreement on outstanding issues: "There is positive engagement between the parties and progress is being made."

TRQ and Rio Tinto (RIO) will extend the maturity date of the interim funding facility and the new bridge facility to no later than Jan. 15, 2014 to allow for completion of the rights offering.

The Oyu Tolgoi concentrator consistently achieved throughput capacity of above 95% of capacity during Q3 and is now operating at nameplate capacity of ~100K metric tons/day of ore; operations continue to progressively ramp up and are now expected to produce 72K-77K metric tons of copper in concentrates for 2013.

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Comments (4)
  • jayinbaker
    , contributor
    Comments (9) | Send Message
    Well, thank you for such a panic selloff. I picked up another 7000 shares in the $4.07-$4.08 area and will buy as much of the rights offering I can. Mongolia needs Oyu Tolgoi more than RIO and will eventually settle their dispute because it is the best thing for the Country. Mark my words, in less than 1 year, TRQ will be one of the top % gainers on the NYSE.
    14 Nov 2013, 10:42 AM Reply Like
  • dreamin
    , contributor
    Comments (100) | Send Message
    Is a rights offering the same as a secondary offering?
    14 Nov 2013, 02:08 PM Reply Like
  • Compaqee
    , contributor
    Comments (17) | Send Message
    @Jayinbaker - I completely agree - especially after reading this article http://yhoo.it/I0SrUr - things are looking quite promising. All parties are coming to the table to get things resolved, this dip is great for parties to grab up more shares. Quite the no brainer that this stock is a great long-term investment. Looking to get money together to exercise the rights to purchase additional shares should it come to fruition.
    14 Nov 2013, 11:10 AM Reply Like
  • healthpicker
    , contributor
    Comments (1098) | Send Message
    Bought more RIO today - good long term bet.
    14 Nov 2013, 06:21 PM Reply Like
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