Australia-based copper miner Tiger Resources has entered a share purchase agreement (SPA) and royalty deed with Sinomine Fuhai (Hong Kong) Overseas Resource Investment to sell its assets in the Democratic Republic of the Congo (DRC) for $260m.
The deal will see the sale of Kipoi Project, Lupoto Project and La Patience permit in DRC.
Under the agreement, the total consideration of $260m will include cash payments of $250m and the assumption of liabilities by Sinomine HK amounting to $10m.
Since February last year, Tiger Resources is under voluntary suspension of work due to financial difficulties.
Tiger Resources intends to use the initial cash instalment of $230m to repay its outstanding banking liabilities.
The second instalment of $20m will be paid three months after the initial payment, subject to working capital adjustments.
The deal also entitles Tiger to receive royalty payments generated from the sale of copper and cobalt by Sinomine HK up to an aggregate amount of $20m.
