rio increases offer for hathor, page-2

Don't under-estimate Rio. EXT is unique... despite management wanting to sell out.

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Rio Tinto raises Hathor offerPublished 7:19 AM, 18 Nov 2011 Last update 7:19 AM, 18 Nov 2011

The battle between Rio Tinto Ltd and Canadian uranium producer Cameco for Hathor Exploration Ltd has ramped up another notch, with Rio the latest to raise its offer.

Rio's increased offer for the junior miner to $C4.70 raises the value of Hathor to about $C654 million and comes just days after Cameco raised the bar to $C4.50.

Rio initially offered $C4.15 per share for Hathor, an offer that trumped an earlier bid from Cameco of $C3.75 per share.

Hathor's board has acknowledged support for the offer and unanimously recommended shareholders accept the offer and tender their common shares to Rio's increased offer.

Cameco first went public with its plans for Hathor in late August but has been consistently rebuffed by the junior mining company, which said Cameco's opening cash offer of $C3.75 per share, or $C520 million, was too low.

Hathor's main asset is the Roughrider uranium deposit, about 15 kilometres northwest of Cameco's Rabbit Lake mill