JOHANNESBURG (miningweekly.com) – Copper miner Tiger Resources, which has been in voluntary suspension on the ASX for nearly a year, announced on Monday that it would sell its Kipoi mine and other Democratic Republic of Congo (DRC) assets to a Chinese consortium.

Sinomine Fuhai (Hong Kong) Overseas Resources Investment, a special purpose vehicle comprising geotech services company Sinomine Resource, listed on the Shenzhen Stock Exchange, and venture capital investment firm Shenzhen Oriental Fortune Capital will pay $260-million for the assets, which include the Kipoi and Lupoto projects, as well as the La Patience permit.

The total consideration comprises cash payments of $250-million and the assumption of liabilities by Sinomine HK of $10-million.

The initial cash instalment of $230-million will be used to repay its outstanding bank debt, said financially and operationally stretched Tiger, which has been requiring assistance from its lenders and creditors to continue to operate. 

Tiger’s total borrowings at November 30, 2017, were $209-million.

The company has also entered into a royalty deed, which entitles it to receive royalty payments from revenue generated from the sale of copper and cobalt by Sinomine HK for an aggregate amount of up to $20-million.

“After careful consideration of the strategic options, the board believes this transaction provides shareholders with the greatest certainty of value realisation and that, on balance, it is in the best interests of shareholders, employees, the Kipoi operations and the future potential of Tiger,” commented chairperson David Frances.

A number of conditions have to be satisfied in order to reach financial close, including the approval of Tiger shareholders and a notice of meeting. The directors have indicated that they intend to unanimously recommend that shareholders approve the transaction.

Following the completion of the transaction, Tiger intends to remain an ASX-listed entity and will have ongoing exposure to the potential copper and cobalt royalty payments from Kipoi.

The company’s shares will remain suspended after the completion of the transaction until its operational and financial future is determined and all ASX requirements for continued listing can be met.