Rio Tinto has reached an agreement with Turquoise Hill to acquire 49% of Turquoise Hill's common shares at a price of CAD43 (US$32) per share.

Rio Tinto and Turquoise Hill have agreed to:

• an increase in the early advance loan to US$650 million from US$400 million;
• a change in the date of raising the initial capital of US$650 million to March 31, 2023, or to May 31, 2023, in case of regulatory delays;
• a requirement for Turquoise Hill to repay the principal in the amount of US$362 million, if the transaction is not approved;
• Rio Tinto's obligation to participate pro rata in the Initial Equity Offering.

The transaction requires the approval of Turquoise Hill's shareholders with 66.67% of the votes and the approval of a majority vote of Turquoise Hill's minority shareholders. If completed, Rio Tinto will receive a 66% stake in Oyu Tolgoi, with the remaining 34% held by the Mongolian government. Rio Tinto currently owns about 51% of Turquoise Hill. 

The transaction is expected to be approved in early Q4 2022 and to close shortly following approval.