After failing to come to an agreement with Sinomine, Tiger Resources has chosen to terminate a deal under which it would have sold its DRC assets to the company.
A share purchase agreement between Tiger Resources (ASX:TGS) and Sinomine Fuhai (Hong Kong) Overseas Resource Investment has been terminated by Tiger after “terms acceptable” to the company were not achieved.
In January, Tiger announced that it would be selling its mining and exploration assets in the Democratic Republic of Congo (DRC) to Sinomine, including its Kipoi and Laputo projects, along with its La Patience permit. The price tag for the acquisition was set at US$260 million.
Along with the share purchase agreement, the companies had entered into a royalty deed, which would entail Tiger receiving royalty payments from revenue generated from copper and cobalt sales by Sinomine for up to US$20 million.
However, in a statement released by Tiger on Friday (July 6), the company explains that terms considered acceptable were not achieved, and that a notice of termination has been issued. The initial share purchase agreement termination date had been June 30, but both companies had mutually agreed to extend that date to wrap up final negotiations.
The statement also says Tiger has been working on a new life-of-mine plan for its Kipoi copper assets, and that the company expects it to be completed sometime in the next six to eight weeks.
The Kipoi project is managed by Tiger’s 95-percent-owned subsidiary Société d’Exploitation de Kipoi, and is located in the central part of the Katanga Copper Belt. The project’s mining license covers 55 square kilometers, and contains five copper deposits: Kipoi Central, Kipoi North, Kileba, Judeira and Kaminafitwe.
Mineral resources for the project were listed at 938,000 tonnes of copper in December 2014.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.