Freeport-McMoRan Copper & Gold Inc. (FCX: Quote) on Friday announced the completion of the deal for the company and its joint venture partners to acquire a large scale cobalt chemical refinery located in Kokkola, Finland, and related sales and marketing business from OM Group, Inc. (OMG: Quote).
The joint venture will operate under the name Freeport Cobalt and Freeport-McMoRan will be the operator with an effective 56% ownership interest, with the remaining effective ownership interests held by its partners in Tenke Fungurume Mining, including 24% by Lundin Mining Corp. (LUN.TO: Quote,LMC: Quote) and 20% by La Générale des Carrières et des Mines.
Total consideration, including about $30 million of acquired cash, approximated $355 million and was funded 70% by Freeport-McMoRan and 30% by Lundin Mining, which amounts will be repaid prior to any distributions.
Under the terms of the agreement, OM Group is entitled to receive potential additional consideration of up to $110 million over a period of three years, contingent upon the achievement of revenue-based performance targets.
by RTT Staff Writer
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