Turquoise Hill Resources Says Board Approves a US$75-Million Bridging Budget for Oyu Tolgoi Underground Work

Turquoise Hill Resources (TRQ) on Monday said it, Rio Tinto (RIO) and the Government of Mongolia agreed to a US$75-million bridging budget to continue work on critical activities for the underground development at its Oyu Tolgoi mine.

The company said it expects the amount will be sufficient to continue work on the underground expansion until mid-January but warned there are no assurances that the three groups will reach an agreement on fully funding the work.

"While the company believes that the decision to approve the bridging budget was a necessary and positive step in the near term, the company cautions that there can be no assurance that the OT board will approve any future necessary additional investments to further progress underground development and accordingly OT LLC remains at risk of having to slow down further work on the underground development," it said in a release.

Turquoise Hill shares closed up C$0.79 to C$19.04 on the Toronto Stock Exchange.