Deals in brief
Jiangxi Copper to acquire stake in PIM Cupric Holdings for $1.1bn
China’s copper producer Jiangxi Copper has signed an agreement to buy the entire equity interest in PIM Cupric Holdings (PCH), which owns a 17.6% stake in First Quantum Minerals, for $1.1bn.
Jiangxi Copper will acquire PCH from investment company Pangaea Investment Management (PIM). The transaction is executed through Jiangxi Copper’s wholly-owned subsidiary Jiangxi Copper (Hong Kong) Investment Company (JCCHK).
PIM, which had beneficial ownership of, and control or direction over the common shares before the transaction, will not have any ownership on the common shares upon completion of the transaction.
PCH has direct ownership of 124,198,371 common shares, which represents approximately 18.015% of the issued and outstanding common shares of First Quantum Minerals.
Jiangxi Copper noted that the common shares were purchased at a price of $11.934 a share.
JCCHK may be considered a joint actor with Jiangxi Copper and the transaction is expected to be closed by the end of this year.
Reuters cited a Chinese media report as saying that Rio Tinto had joined the bidding for First Quantum Minerals.
In September, First Quantum Minerals announced that it was in negotiations with Jiangxi for a potential sale of a minority interest in its Zambian copper assets.
Under a standstill agreement signed in October, Jiangxi Copper was prevented from buying more than a 20% interest in First Quantum Minerals.
Last month, First Quantum Minerals chief executive Philip Pascall said that the company is also seeking partners for new copper projects, including a possible joint venture with Rio Tinto.
Kinross to sell remaining stake in Lundin Gold for $113.8m
Canadian mining firm Kinross Gold has agreed to sell its remaining 20.65 million shares in Lundin Gold for approximately C$150m ($113.8m).
The shares will be sold to a syndicate of buyers, including Newcrest Mining’s wholly owned subsidiary and the Lundin Family Trust.
South Korea’s SK Innovation signs cobalt supply deal with Glencore
South Korean company SK Innovation has signed a six-year agreement with Glencore for up to 30,000t of cobalt contained in hydroxide.
Under the terms of the agreement, Glencore will supply cobalt between 2020 and 2025. The deal would enable SK Innovation to produce batteries for three million electric vehicles (EVs).
Endeavour proposes merger with Centamin
The Endeavour Mining Corporation has announced that it is looking to agree to a merger with Centamin due to the latter’s “compelling long-term value creation opportunity.”
The company has outlined three critical reasons it has proposed the merger: it would enable a “diversified high quality portfolio”, the combined management team would benefit from its expertise, and Endeavour hopes that the combined entity would offer a “stable, diversified and sustained cash flow profile”.
CDPR agrees to acquire Volcan’s mining assets in Peru
Cerro de Pasco Resources (CDPR) has signed an agreement to acquire all of the issued shares of Volcan Compañia Minera’s Oxidos de Pasco, Empresa Administradora de Cerro (Cerro SAC) and Remediadora Ambiental (together referred as target companies).
Zijin Mining to acquire Canada’s Continental Gold for $1.05bn
China’s Zijin Mining has signed a definitive agreement to acquire Canadian mining firm Continental Gold for a total equity value of C$1.4bn ($1.05bn) in cash.
Under the terms of the agreement, Zijin Mining has agreed to buy all of the outstanding shares of Continental Gold priced at C$5.50 ($4.14) a share.
Saracen acquires Kalgoorlie Consolidated Gold Mines for $750m
Saracen Mineral Holdings has completed the acquisition of 50% of Barrick Gold’s stake in Kalgoorlie Consolidated Gold Mines (KCGM) in Western Australia for $750m in cash.