Canada’s Lundin Mining Corp (TSX: LUN) has closed its sale of an interest in TF Holdings Ltd, through which Lundin owned a 24 percent stake in Tenke Fungurume Mining SA, a copper and cobalt mine in the Democratic Republic of Congo. The buyer, Chinese private equity firm BHR Partners, paid US$1.136 billion in cash for the interest. The deal was announced last November. Lundin, a base metals mining company headquartered in Toronto, said the sale enables a focus on its majority-owned operations and projects, growth of the business, and maintenance of a strong balance sheet.
Lundin Mining Announces Completion of Sale of Interest in TF Holdings for $1.136 Billion
TORONTO, ONTARIO–(Marketwired – April 19, 2017) – Lundin Mining Corporation (“Lundin Mining” or the “Company”) (TSX:LUN) (OMX:LUMI) is pleased to announce the completion of the sale of its indirect interest in TF Holdings Limited (“TF Holdings”) 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.”
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations in Chile, the United States of America, Portugal, and Sweden, primarily producing copper, nickel and zinc. In addition, Lundin Mining holds an indirect 24 percent equity stake in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.
On Behalf of the Board,
Paul Conibear, President and CEO
The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation and the Swedish Securities Market Act. This information was publically communicated on April 19, 2017 at 6:30 p.m. Eastern Time.
FOR FURTHER INFORMATION PLEASE CONTACT:
Director, Business Valuations and Investor Relations
Senior Associate, Investor Relations
Investor Relations Sweden
+46 8 545 015 50
Photo courtesy of Reuters/Jonny Hogg