Deals This Week: Inmet, CoAL, Lugansk and More

5 December 2010 (Last Updated December 5th, 2010 18:30)

Inmet Mining has signed a binding agreement with Leucadia National and an affiliate to acquire its 30% indirect equity interest in the Cobre Las Cruces copper mine in Spain for $552m. Under the agreement, Inmet will pay $150m in cash and $330m in common shares, while Le

Inmet Mining has signed a binding agreement with Leucadia National and an affiliate to acquire its 30% indirect equity interest in the Cobre Las Cruces copper mine in Spain for $552m.

Under the agreement, Inmet will pay $150m in cash and $330m in common shares, while Leucadia will be released from its guarantee on $72m of debt owed by Las Cruces to an affiliate of Inmet.

Coal of Africa Limited (CoAL), through one of its black empowered subsidiaries, has acquired the Chapudi coal project and several other coal exploration properties in the Limpopo province of South Africa.

The acquisition calls for CoAL to pay $75m to Rio Tinto and Kwezi Mining, the joint venture companies of the Chapudi project, which has an estimated 1,040Mt JORC resource.

Lugansk Gold has signed a letter of intent (LOI) with a strategic investor that will allow it to invest about $20m in the issued capital of Lugansk Gold through a private pre-IPO placement.

The LOI provides the strategic investor with a right of first refusal to underwrite any future capital risings undertaken by Lugansk Gold, and the right to preserve the percentage of the equity holding of the strategic investor in Lugansk Gold.

Coal India is looking for a possible acquisition of five mines in the US, Australia and Indonesia to meet India's demand for the fuel.

Rio Tinto is eyeing at potential acquisitions and Philippines-based San Miguel is planning to either enter into a joint venture or acquire other coal mines in Indonesia.