Freeport-McMoRan Completes Sale of Interest in TF Holdings Limited for $2.65 Billion in Cash
17 November 2016 - 8:10AM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has
completed the indirect sale of its 70 percent interest in TF
Holdings Limited (“TFHL”) to China Molybdenum Co., Ltd. for $2.65
billion in cash. TFHL is a Bermuda holding company that indirectly
owns an 80 percent interest in Tenke Fungurume Mining S.A. (Tenke)
located in the Democratic Republic of Congo. FCX had a 70 percent
interest in TFHL and an effective 56 percent interest in Tenke.
FCX plans to use net proceeds from the transaction of
approximately $2.65 billion to repay indebtedness, half of which
will be used to repay borrowings under FCX's unsecured bank term
loan.
Under the terms of the agreement, FCX could also receive
contingent consideration of up to $120 million in cash, consisting
of $60 million if the average copper price exceeds $3.50 per pound
and $60 million if the average cobalt price exceeds $20 per pound,
both during calendar years 2018 and 2019.
FCX is a premier U.S.-based natural resources company with an
industry-leading global portfolio of mineral assets. FCX is the
world's largest publicly traded copper producer.
FCX’s portfolio of assets includes the Grasberg minerals
district in Indonesia, one of the world's largest copper and gold
deposits, and significant mining operations in the Americas,
including the large-scale Morenci minerals district in North
America and the Cerro Verde operation in South America. Additional
information about FCX is available on FCX's website at
"fcx.com."
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version on businesswire.com: http://www.businesswire.com/news/home/20161116006528/en/
Freeport-McMoRan Inc.Financial
Contacts:Kathleen L. Quirk,
602-366-8016orDavid P. Joint,
504-582-4203orMedia Contact:Eric E. Kinneberg,
602-366-7994
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