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Home BUSINESSTalvivaara, Terrafame ink Sotkamo sales deal
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Fri, 29 Jan, 2016 12:08:09 AM
FTimes Report, Jan 29

Nickel mining company Talvivaara on Thursday signed a letter of intent with Terrafame Ltd on a provisional agreement on essential terms and conditions for the sale of Talvivaara’s assets related to the Sotkamo mining operations.

Assets to be sold include the lime plant needed in the Sotkamo operations, laboratory business, as well as ownership of the geological data associated with the mine, said a Talvivaara press release.

The parties have also agreed on the transfer of the laboratory personnel to Terrafame Ltd as old employees as well as on the possibility of Terrafame Ltd recruiting Talvivaara’s key personnel working at the mine. 

Subject to certain conditions, Terrafame Ltd shall pay to Talvivaara a total net purchase price of 3.8 million euros upon the completion of the arrangements.

As part of the letter of intent, it has also been provisionally agreed that Talvivaara will have a possibility to become an owner of Terrafame Ltd with a stake of at least 10.1 per cent of the shares and votes, if Talvivaara can successfully raise the necessary funds for the investment. 

The arrangement is to take place in two phases and, in the first phase, Terrafame Ltd will buy the laboratory business required in the production process and the geological data associated with the Sotkamo mine.

Upon completion of the second phase of the arrangement, Terrafame Ltd will buy from Talvivaara the lime plant required in the production process of the mine.

Terrafame Ltd shall pay to Talvivaara a purchase price of EUR 12.5 million. Simultaneously, Talvivaara will pay to Winttal Ltd EUR 3.8 million as a full and final settlement of Talvivaara’s debts and liabilities which were transferred to Winttal Ltd from Nyrstar Sales & Marketing AG in December 2015.

In addition, as part of the arrangements, Terrafame Group Ltd will acquire debts of Talvivaara from certain commercial banks and Finnvera Plc, with a nominal value of approximately EUR 129.6 million.

 

 
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