Apr 20 2017
Lundin Mining Corporation is pleased to announce the completion of the sale of its indirect interest in TF Holdings Limited to an affiliate of BHR Partners, a Chinese private equity firm, for $1.136 billion in cash.
TF Holdings is a Bermuda holding company that owns an 80 percent interest in Tenke Fungurume Mining S.A. ("Tenke") located in the Democratic Republic of Congo. Lundin Mining held an indirect 30 percent interest in TF Holdings and therefore, an effective 24 percent interest in Tenke.
Under the terms of the agreement previously announced on November 15, 2016, the Company could also receive contingent consideration of up to $51.4 million, consisting of $25.7 million if the average copper price exceeds $3.50 per pound and $25.7 million if the average cobalt price exceeds $20.00 per pound, both during a 24-month period beginning on January 1, 2018.
Concurrently with the completion of the sale, the Company paid approximately $14.2 million to CMOC Ltd. (together with its affiliates, "CMOC") as reimbursement for payments made by CMOC in connection with a settlement agreement among La Générale des Carrières et des Mines ("Gécamines"), Tenke, TF Holdings, Freeport-McMoRan Inc., CMOC, the Company and BHR to resolve all claims brought by Gécamines against TF Holdings and several other parties (other than Lundin Mining) related to the sale of TF Holdings.
Mr. Paul Conibear, President and CEO of the Company commented: "The completion of the sale of our minority interest in Tenke will enable Lundin Mining to focus on its majority-owned operations and projects and in parallel, advance our strategy to grow the company while maintaining a strong balance sheet. Lundin Mining is proud to have been part of Tenke's successful record. We wish the shareholders of Tenke every success in the future."
Source: http://lundinmining.mwnewsroom.com/press-releases/lundin-mining-announces-completion-of-sale-of-interest-in-tf-holdings-for-1-136-tsx-lun-201704191092223001