Rio Tinto boosts its Ashton stake

Rio Tinto (RTP-N, RIO-L) has boosted its stake in diamond explorer Ashton Mining of Canada (ACA-T) via a $4.5 million private placement.

The mining giant has agreed to acquire 3.46 million additional flow-through common shares at $1.30 apiece. The shares represent 4.4% of Ashton’s issued and outstanding shares.

Ashton also recently announced another like-price private placement worth $4.5 million. The best-efforts offering will be led by Canaccord Capital. The agents, which also include Dundee Securities will be paid a cash fee equal to 6% of the offering’s gross proceeds.

The offering is expected close by Dec. 20. Proceeds will be applied to diamond exploration in Canada.

When the dust settles, Rio’s stake in Ashton will have rise to 53.4% from 52.3%.

Shares in Ashton were 4, or 3.6%, better at $1.15 in afternoon trading in Toronto on Dec. 1, following the news after markets closed on Nov. 30.