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Record close for Riversdale as Rio Tinto interest revealed

Publishing Date
06 Dec 2010 11:25am GMT
Mining Journal

Shares in Riversdale Mining Ltd closed at a record high in Australia on Monday after the Mozambican coal company confirmed that it had held takeover discussions with mining giant, Rio Tinto.

Riversdale said: “The company has had discussions with Rio Tinto concerning a possible transaction at the corporate level for indicative consideration of A$15.00 per Riversdale share.”

The company goes on to say that Rio Tinto has advised it is not in a position to submit a proposal but that discussions with Rio Tinto are ongoing.

The price discussed values Riversdale at approximately A$3.5 billion (US$3.47 billion), although the shares closed higher on Monday at A$16.31/share.

Riversdale counts Wuhan Iron and Steel, India’s Tata Steel and Brazil’s CSN as major investors. Mining giant Vale is developing the Moatize coal project in Tete.

Riversdale has more than 13,000Mt of thermal and coking coal resources over two projects, Zambeze and Benga.

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