Copper mining firm Tiger Resources has terminated a $260m deal involving the sale of its assets in the Democratic Republic of Congo (DRC) to a Chinese consortium.
In January this year, Tiger entered into a share purchase agreement (SPA) to divest its mining and exploration assets in the DRC, comprising the Kipoi project, Lupoto project and La Patience permit, to a special purpose vehicle known as Sinomine Fuhai (Hong Kong) Overseas Resource Investment (Sinomine HK).
Participants in the consortium include geo-tech services firm Sinomine Resource Exploration and venture capital investment firm Shenzhen Oriental Fortune Capital (OFC).
The deal included cash payments totalling $250m and the assumption of liabilities worth $10m by Sinomine HK.
Tiger issued a Notice of Termination of the SPA to Sinomine HK after it could not reach favourable terms regarding the deal. The termination date was arranged to be 30 June this year, but all parties agreed to an extension of the deadline to ensure final negotiations could be completed.
Alongside the SPA, the companies also signed a royalty deed, under which Sinomine HK is required to make royalty payments to Tiger from revenue generated from the sale of copper and cobalt of up to a total amount of $20m.
At the time of signing the deal, Tiger Resources chairman David Frances said: “After careful consideration of the strategic options, the board believes this transaction provides shareholders with the greatest certainty of value realisation and that, on balance, it is in the best interests of shareholders, employees, the Kipoi operations and the future potential of Tiger.”