China Moly Lists Three Companies Buying Stakes in Congo Investor


China Molybdenum Logo

China Molybdenum Logo

(Bloomberg) — China Molybdenum introduced three investors to Chinese private equity firm BHR Partners to support company’s acquisition of minority stake in Tenke Fungurume copper, cobalt mine in Democratic Republic of Congo, according to statement published March 6.

*  Companies to acquire as much as $600m of BHR shares to support $1.14b acquisition of 24% stake in TFM from Lundin Mining
*  BVI-registered Hantang Iron Ore Investment will invest up to $250m; Hong Kong-incorporated CNBC Investment up to $300m; BVI-registered Design Time up to $50m
*  China Moly introduced investors based on Jan. 22 agreement that Chinese miner would support BHR to fund purchase if it failed to obtain all necessary funding
* Under agreement, China Moly has right to acquire at pre-agreed price BHR’s stake in project once Lundin deal concludes
*  If China Moly’s put/call option is executed, Hantang, CNBC and Design Time will be compensated, China Moly says
* NOTE: China Moly will also assist BHR to secure syndicated loans not exceeding $690m to fund remainder of purchase, it said in Jan. 20 statement
* Link to statement