Running Commentary on the SP Movements., page-3164

CMOC Announces Acquisition of Freeport-McMoRan’s Indirect 56% Interest in Tenke Fungurume for US$2.65 billion (USD)


November 16, 2016 07:30 PM Eastern Standard Time

HONG KONG & SHANGHAI--(BUSINESS WIRE)--China Molybdenum Co., Ltd (“CMOC”) is pleased to announce that all conditions precedent set out in the Stock Purchase Agreement with Freeport-McMoRan (“FCX”) to acquire their indirect 70 percent interest in TF Holdings Limited (“TFHL”) has been fulfilled and the transaction completed. TFHL is a Bermuda holding company that indirectly owns an 80 percent interest in Tenke Fungurume Mining S.A. (“Tenke”) located in the Democratic Republic of Congo (“DRC”). FCX had a 70 percent interest in TFHL and an effective 56 percent interest in Tenke.

CMOC paid approximately $2.65 billion in cash, with contingent consideration of up to $120 million in cash, consisting of $60 million if the average copper price exceeds $3.50 per pound and $60 million if the average cobalt price exceeds $20 per pound, both during calendar years 2018 and 2019.

“We are excited to be a miner in the DRC which hosts one of the largest know copper belts in the world. We are pleased to complete this transaction with the full support of the DRC Government. We look forward to developing long-term partnership and friendship with all the stakeholders” CMOC Chairman and Executive Director Mr. Li Chaochun commented.