Lundin Mining to Acquire An Interest in Reservoir Minerals' Timok Project From Freeport

Lundin Mining (TSX:LUN) has entered an agreeement to purchase an interest in Freeport McMoRan’s (NYSE:FCX) stake in the Timok project in Serbia. The Timok project is jointly owned by Freeport, who is operator, and by Reservoir Minerals (TSXV:RMC).
As quoted in the press release:

Total consideration of up to US$262,500,000 is payable in stages upon the achievement of key development milestones defined under the purchase agreement, as more particularly described below.
The transaction is subject to Reservoir’s right of first offer (“ROFO”), as well as other customary closing conditions. Prior to entry into the purchase agreement, a ROFO notice was provided today by Freeport to Reservoir, and is open for acceptance by Reservoir for 60 days from the receipt of notice. If the ROFO is not exercised by Reservoir, the transaction is expected to close in the second quarter of 2016.

Lundin Mining CEO, Paul Conibear, said:

The acquisition of an interest in the Timok project is consistent with our growth criteria that we have rigorously followed over the last few years. This high quality copper/gold project fits ideally within our overall asset base of operations in the Americas and Europe. This transaction enables the existing Freeport/Reservoir partnership to leverage our proven underground base metals development, construction and operating skill sets to advance the Timok project into operation in a timely manner. The Timok project is expected to enhance the Company’s long term copper growth pipeline, while preserving our strong balance sheet. We are very pleased to be able to extend our partnership with Freeport and we intend to advance a meaningful and cooperative relationship with Reservoir to the benefit of all stakeholders including those in Serbia.

Click here for the full press release.