Rio Tinto, Turquoise Hill strike funding deal for Oyu Tolgoi

Rio Tinto (ASX, LON, NYSE: RIO) and its majority-owned Turquoise Hill Resources (TSX, NYSE: TRQ) have reached a deal that ends a standoff between the companies over funding for an expansion of the massive Oyu Tolgoi copper-gold mine in Mongolia.

The funding plan addresses the remaining $2.3 billion needed for the underground project, building on and replacing deals set up under a memorandum of understanding inked in September last year.

The companies have agreed to restructure debt payments of up to $1.4 billion with lenders and look to raise up to $500 million in supplemental debt under existing financing arrangements, Rio Tinto said.