Rio Tinto Sells Ashton to Stornoway

Rio Tinto’s shares in Ashton Mining of Canada have been purchased by Stornoway Diamond Corporation for about $26.1 million and approximately 25.6 million Stornoway common shares. Rio Tinto held a 51.7 percent share of Ashton via two wholly owned subsidiaries, Ashton Canada Pty. Limited and QIT-Fer et Titane Inc.

Altogether, Rio Tinto held 49,037,982 common shares of Ashton.

Rio Tinto has been advised by Stornoway that upon payment for all shares taken up on September 18, 2006 under the bid and completion of certain related transactions by Stornoway, Rio Tinto will hold approximately 17.7 percent of Stornoway's issued and outstanding common shares.

Rio Tinto says it currently has no intention of acquiring other Stornoway shares, but it intends to keep its new stake in Stornoway.

Meanwhile, Ashton’s board urged minority shareholders to refuse the Stornoway bid, saying they are currently holding a higher asset.