Turquoise Hill Announces Start Of Oyu Tolgoi Underground Mine, Renewed Partnership With The Government Of Mongolia And A Comprehensive Funding Arrangement For Its World Class Oyu Tolgoi Mine
Turquoise Hill Announces Start Of Oyu Tolgoi Underground Mine, Renewed Partnership With The Government Of Mongolia And A Comprehensive Funding Arrangement For Its World Class Oyu Tolgoi Mine
01/24/22, 5:45 PM
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financial services
Turquoise Hill Resources Ltd. ("Turquoise Hill" or the "Company") today announced that it has successfully reached a mutual understanding for a renewed partnership with the Government of Mongolia and the Oyu Tolgoi LLC ("OT LLC") board of directors has unanimously approved the commencement of the undercut, namely the commencement of blasting that will start the Oyu Tolgoi ("OT") underground mine production. Consequently, the Company expects to begin caving operations in the coming days. With this decision, the Company continues to expect that the underground mine will achieve sustainable production for Panel 0 in the first half of 2023.
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If the Re-profiling and SSD funding contemplated by the 3rd A&R HoA are not wholly successful, or the principal repayment of US$362 million under the OT Project Financing is required to be made on December 15, 2022 the Company would require additional equity financing which would be incremental to estimated equity raising of US$1.05 billion previously disclosed in Q2’22.The Company’s incremental funding requirement, and quantum and timing of any incremental equity raises, continue to be impacted by various factors, many of which are outside of its control and, as a result, their actual quantum and/or timing could be different from the estimates provided and such variance may be significant.