TRQ - Rio Tinto Turquoise Hill reach agreement on funding plan for Oyu Tolgoi

Rio Tinto (RIO) and Turquoise Hill Resources (TRQ) have entered into a binding Heads of Agreement (HoA) to provide an updated funding plan for the completion of the Oyu Tolgoi ((OT)) underground project in Mongolia.The Funding Plan is designed to address the remaining funding requirement of ~$2.3B and replaces the non-binding Memorandum of Understanding that Rio Tinto and Turquoise Hill previously entered into on September 9, 2020. Under the HoA, subject to approval by OT and Government of Mongolia, both the companies will:Pursue re-profiling of existing project debt to better align with the revised mine plan, project timing and cash flows to reduce the projected fund requirements by up to $1.4B, and seek to raise up to $500M in senior supplemental debt. In addition, Rio Tinto has committed to address any potential shortfalls of up to $750M by providing a senior co-lending facility on the same terms as OT's project

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Rio Tinto, Turquoise Hill reach agreement on funding plan for Oyu Tolgoi