Turquoise Hill plans rights offering for Oyu Tolgoi

|By:, SA News Editor

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.