“Oyu Tolgoi is an attractive tier one asset, and we remain highly focused on and optimistic about its transformation into one of the world’s great copper mines," Turquoise Hill said.
MARTIN BACCARDAX
AUG 15, 2022 6:12 AM EDT
Turquoise Hill Resources (TRQ) shares plunged lower Monday after the Canadian mining group rejected a $2.7 billion buyout offer from Rio Tinto plc (RIO) .
Turquoise Hill said Rio Tinto's offer of $C34 a share for the 49% stake it doesn't already own -- first unveiled in March -- undervalues the Montreal-based group, which focuses on copper and gold mining in the Oyu Tolgoi project in southern Mongolia.
Rio had been working with a so-called 'special committee' set up by Turquoise Hill to evaluate its $2.7 billion bid, but the group noted that engagement between the two parties "has not resulted in a consensus on value and price or in any improved proposal from Rio Tinto."
“The underground project is advancing better than originally anticipated. We were able to start blasting the drawbells ahead of schedule and caving operations are progressing to the point where we expect to achieve sustainable production earlier than forecast," said Turquoise Hill's interim CEO Steve Thibeault. "The funding agreement with Rio Tinto remains in effect and the Company is executing on those commitments, which we expect will provide us with sufficient liquidity to meet our funding requirements."
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