The British company MINECO officially opened the lead mine at Olovo in Bosnia and Herzegovina on...
Tiger Resources to divest all its assets in DRC
Tiger Resources has entered into binding agreement to divest DRC operations to a consortium comprising Sinomine Resource Exploration and Shenzhen Oriental Fortune Capital. Under the terms of the SPA, Sinomine HK will acquire 100% of Tiger’s shares in its subsidiaries and its interests in the Kipoi Project, Lupoto Project and La Patience permit. In exchange, Tiger is entitled to receive total consideration of USD 260 million, comprising cash payments totalling USD 250 million and the assumption of liabilities by Sinomine HK totalling USD 10 million.
The cash payments will be made in two instalments. The initial instalment of USD 230 million will primarily be applied to the repayment of the Company’s outstanding banking liabilities. The second instalment of USD 20 million will be paid 3 months after the initial instalment, and is subject to typical working capital adjustments. Tiger’s total borrowings as at 30 November were USD 209 million. Under the terms of the Royalty Deed, Tiger is entitled to receive royalty payments from revenue generated from the sale of copper and cobalt by Sinomine HK of up to an aggregate amount of USD 20 million.
In commenting on the signing and announcement of the Transaction, Tiger’s Chairman, David Frances, said: “Over the past 12 months Tiger has faced numerous operational and financial headwinds which has led to the Company being in voluntary suspension since February 2017 and requiring support from its lenders and creditors to continue operating. The Board has been pleased with the progress of the operational turnaround and the rectifications that have been made to improve the performance of the Kipoi operations, as reflected in the recent increase in the tank leach throughput. In parallel with this operational turnaround, the Company has been considering various strategic options that will allow it to address its balance sheet issues and ultimately realise value for its shareholders.