Passport Capital LLC has put its remaining 5% stake in Mozambique-focused coking coal developer Riversdale Mining Ltd. (RIV.AU) into an institutional acceptance facility set up as part of Rio Tinto PLC's (RIO) US$4.0 billion bid for the company, according to a person familiar with the situation Tuesday.

Passport put its stake into the facility at A$16.50 a share, the raised bid price announced by Rio Tinto last week after an initial A$16.00 a share offer attracted lackluster support from shareholders.

Passport, a San Francisco-based investment fund which was the second-largest shareholder in the miner at the start of Rio's bid for the company on Dec. 24, was an early supporter of the offer and made over half of its 16% holding into a pre-bid acceptance facility. A further 3% was sold on the open market to Rio Tinto, the person said.

Rio Tinto announced Monday that its offer was now backed by shareholders accounting for 26.13% of Riversdale's voting rights.

The company's two largest investors--Indian and Brazilian steelmakers Tata Steel Ltd. (500470.BY) and Cia. Siderurgica Nacional (SID)--hold a combined 47% of voting rights, giving them an effective lock over any takeover offer.

The takeover is due to close on April 1, although the A$16.50 offer only lasts until March 23.

-By David Fickling, Dow Jones Newswires; +61 2 8272 4689; david.fickling@dowjones.com
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