Ivanhoe Scores Rio Tinto Deal

Shares rise 25%.
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Ivanhoe Mines

(IVN)

leaped 25% Wednesday after the miner scored a big investment from a huge industry player.

London's

Rio Tinto

(RTP)

agreed to sink $303 million into Vancouver-based Ivanhoe to get access to a big Mongolian copper-gold mine.

Rio could end up taking a stake as big as $1.5 billion under certain conditions, the companies said.

The companies said they will jointly engineer, construct and operate Ivanhoe's Oyu Tolgoi copper-gold mining complex in Mongolia's South Gobi region. The agreement creates a defined path for Rio Tinto to become the largest shareholder in Ivanhoe Mines, the companies said.

Ivanhoe has agreed to use at least 90% of the proceeds received from Rio Tinto to finance the development of Oyu Tolgoi.

On Wednesday, Rio Tinto rose $4.27 to $206.83 and Ivanhoe rose $1.66 to $8.19.