Freeport-McMoRan Copper & Gold Inc. (FCX) 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).
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, LMC) 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.
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