Rio (NYSE:RTP) Increases Ivanhoe Stake (NYSE:IVN)

Rio Tinto (NYSE:RTP) announced Monday it has increased its stake in Ivanhoe Mines to 34.9 percent. That followed a conversion of a matured convertible credit facility by Rio.

That brings the total investment by Rio in Ivanhoe to $1.73 billion. They also have rights to subscribe for common shares in Ivanhoe, which if exercised, would bring the total stake in the company to about 44 percent.

Ivanhoe has control of the extraordinary Oyu Tolgoi copper-gold project in Mongolia, which is among the largest undeveloped mines in the world.

The two companies are partnering to develop the resource, which also includes a stake by the Mongolian government in the deal.

The project is expected to cost about $5 billion to develop.

Ivanhoe has also signed a preliminary agreement valued at up to $1.8 billion with two global financial institution for financing purposes if needed.