Ivanhoe Mines Ltd. said Monday it has closed a private stock placement with Anglo-Australian mining company Rio Tinto for USUSD241.1 million.

Ivanhoe, which is based in Vancouver, issued 15 million common shares at 16.31 Canadian dollars per share to Rio Tinto. The transaction increased Rio Tinto’s stake in Ivanhoe to 22.4% from 19.6%.

Rio Tinto has rights to subscribe for common shares from Ivanhoe’s treasury and to make purchases on the open market that could boost its stake in Ivanhoe to as much as 46.6 % over the next 19 months.

Ivanhoe used USUSD195.4 million of the proceeds to purchase equipment from Rio Tinto for a copper-and-gold mine complex in Mongolia. The rest of the proceeds will be used for general corporate purposes and to buy additional equipment.