The share price of TSX- and NYSE-listed Turquoise Hill plunged on Thursday, as controlling shareholder Rio Tinto announced that a Turquoise Hill rights issue would be needed for the Oyu Tolgoi underground project, in Mongolia.
The company’s stock fell 22% in Toronto following the announcement, which stated that Rio Tinto and Turquoise Hill would pursue reprofiling of principle debt repayments with lenders under existing project finance arrangements to better align with the revised mine plan, project timing and cash flows.
The companies would seek to raise up to $500-million in additional lending under existing project financing for the Oyu Tolgoi underground project.