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Home BUSINESSBritish company to buy Talvivaara
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Fri, 13 Mar, 2015 12:04:48 AM
FTimes – STT Report, Mar 13
 
Talvivaara mine in Sotkamo on Thursday. Photo – Str / Lehtikuva.
Nickel mining company Talvivaara on Thursday announced that Audley Capital Advisors LLP, a British investment and capital advisory firm, had entered into a conditional asset purchase agreement to acquire the assets of Talvivaara Sotkamo from its Bankruptcy Estate.
 
The Audley Consortium has also entered into an agreement with Finnish government owned company Terrafame, said Talvivaara.
 
Jan Vapaavuori, the Minister of Economic Affairs, referred to the agreement as an important step, but underlined that the agreement is conditional and there are major uncertainties concerning the closing of the transaction.
 
"If completed, the deal signed with Audley will provide sufficient financing to develop the mining operations and Talvivaara with new managerial talent. These are also preconditions for long-term, environmentally sustainable and profitable business," said Vapaavuori in an official statement.
 
Audley Consortium is to become the lead investor and operator with an 85 per cent ownership interest, whereas Terrafame will own the remaining 15 percent of the new mining company.
 
Talvivaara officials express satisfaction over the possible deal. Photo – Str / Lehtikuva.
Furthermore, Audley Consortium and Terrafame intend to inject a substantial amount of new funds for the restart of the mine, amounting to a total of over euro 200 million in addition to the purchase price.
 
The parties have agreed not to disclose the purchase price. Closing is expected to take place during the summer of 2015. Until the completion of the transaction, the business will be maintained and managed by the Bankruptcy Estate.
 
Before the transaction can close and operations at the mine can be ramped up under the direction of the new mining company, a number of steps must still take place including the provision of the necessary regulatory permits and the obtaining of committed financing. 
 
John MacKenzie from Audley is likely to be appointed as the CEO of the new mining company. 
 
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