The development follows the closure of Energy Resources of Australia’s (ERA) non-underwritten pro rata renounceable entitlement offer. Credit: William Barton/Shutterstock.

Mining giant Rio Tinto will take full control of ERA, holding more than 98% of the company’s shares, following ERA’s entitlement offer and shortfall bookbuild.

The move raised A$766.5m to fund rehabilitation activities at ERA’s Ranger Project Area in the Northern Territory of Australia.

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Rio Tinto has taken up its pro rata entitlements, leading to the increase in its stake in ERA.

Rio Tinto 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.

“Proceeding with compulsory acquisition, after participating for our full entitlement in the ERA capital raising, underlines our commitment to Ranger’s rehabilitation.”

The acquisition price is A$0.002 per ERA share, the same price as the entitlement offer. Rio Tinto has stated that, following the acquisition, it has no plans to invest in the mining or development of the Jabiluka deposit.

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ERA has confirmed the closure of its non-underwritten pro rata renounceable entitlement offer, with the new shares set to be issued on 21 November 2024.

These will commence trading on the Australian Securities Exchange (ASX) on a normal settlement basis on 22 November 2024.

Eligible ERA shareholders including Rio Tinto will receive their new shares on the issue date, resulting in Rio Tinto’s voting power increasing to approximately 98.43% in ERA.

ERA will continue to update shareholders on any developments including steps taken by Rio Tinto following the issue of the new shares.