Rio Tinto PLC on Tuesday said it has taken up full entitlements in an Energy Resources of Australia Ltd rights issue.

The London-based diversified mining company noted an announcement made by Energy Resources regarding the completion of its entitlement offer and shortfall bookbuild which raised A$766.5 million, approximately $498.5 million, for the planned rehabilitation of the Ranger uranium project area in Australia’s Northern Territory.

‘As a result of Rio Tinto taking up its pro rata entitlements in the entitlement offer and the level of participation by other ERA shareholders,’ Rio Tinto said.

Rio Tinto will purchase shares in Energy Resources at A$0.002 each, matching the price of the entitlement offer, to consequently hold a 98% stake in the Darwin, Australia-based miner.

Energy Resources shares closed 33% lower at A$0.002 each in Sydney on Tuesday.

Chief Executive, Australia, Kellie Parker said: ‘We remain committed to the successful rehabilitation of the Ranger Project Area to a standard that will establish an environment similar to the adjacent Kakadu National Park, a World Heritage site. Our utmost priority and commitment is to complete this important rehabilitation project in a way that is consistent with the wishes of the Mirarr People.’

The company added that it has no intention to mine or develop the nearby Jabiluka deposit if the compulsory acquisition is completed.

Rio Tinto shares were up 1.0% at 4,914.00 each in London on Tuesday morning after shares closed 0.4% lower in Sydney at A$115.70.

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