HomeBase MetalsLundin Mining receives extension on Tenke Fungurume buyout offer

Lundin Mining receives extension on Tenke Fungurume buyout offer

TSX-listed base metals mining company Lundin Mining, has been granted an extension to 15 September 2016 to decide whether it wants to acquire Freeport-MacMoran’s indirect interest in TF Holdings – the holding company that indirectly owns an 80% interest in the Tenke Fungurume copper mine in the Democratic Republic of Congo (DRC).

Freeport-McMoran and Lundin Mining each currently hold a 70% and 30% interest, respectively in TF Holdings.

As announced on 9 May 2016, Lundin Mining received a notice from Freeport-McMoran offering it the right to acquire Freeport-McMoran’s indirect interest in TF Holdings at the same purchase price and on the same terms and conditions offered by China Molybdenum, which offered $2.65 billion in cash and contingent consideration of up to $120 million.

The base metals company is in consultation with its legal and financial advisors and it continues to evaluate all its options in connection with its ownership interest in TF Holdings and in turn in the Tenke Fungurume operation.

The Tenke Fungurume mine has become the world’s premier cobalt producer and one of the largest copper producers in the DRC, having produced its millionth metric ton of copper in 2015, only six years after operational start-up.

The deposits are located within two concessions totaling over 1 500 km².