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Rio Tinto Ltd (ASX:RIO) has boosted its stake in Ivanhoe Mines Ltd from 42 per cent to 46.5 per cent.
The global miner says it has given notice to Ivanhoe that it is exercising its remaining warrants under an agreement inked at the end of 2010.
The agreement enables Rio to buy Ivanhoe shares at an average subscription price of around $US9.10 per share, for total consideration of around $US502 million.
Rio says the increased ownership will enable it to nominate an additional director to Ivanhoe’s board, meaning Rio-nominated directors will rise from six to seven out of a total of 14.
Rio Tinto reported a net profit of $14.9 billion in the six months to 31 December 2010.
