Turquoise Hill Says Odey Letter To Rio Contains 'False Assumptions'

Turquoise Hill Resources (TRQ) issued a statement regarding the published letter to Rio Tinto (RIO) from Odey Asset Management.

The statement reads in part: "Odey's letter to Rio Tinto contains a number of false assumptions and misinformation about Turquoise Hill and its funding plan. While Odey has a clear financial motive to depress Turquoise Hill's share price, the Company is focused on executing its funding plan and maximizing value for shareholders. Turquoise Hill's management team and independent directors have previously announced a funding plan that seeks to maximize debt at the Oyu Tolgoi LLC level and minimize (or possibly even avoid) a rights offering, for the benefit of Turquoise Hill shareholders. We are pursuing tangible measures to execute on that plan, including engaging with Rio Tinto and our minority shareholders, market-testing debt and hybrid financing alternatives, and initiating arbitration to clarify Rio Tinto's obligations to Turquoise Hill. The funding Memorandum Of Understanding between Rio Tinto and TRQ remains in place and continues to reflect the understandings between the parties as to funding-related matters. Work is ongoing to implement the funding MOU in full. Neither TRQ nor Oyu Tolgoi LLC has any intention or plan to prepay or refinance Oyu Tolgoi LLC's existing US$4.4 billion project finance facilities (with proceeds of a rights offering or otherwise). This facility is expected to remain in place until its maturity. Contrary to Odey's misleading assertions, Rio Tinto has no right to require the prepayment, refinancing or removal' of Oyu Tolgoi LLC's existing project finance facilities."
 

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