Falconbridge (FL-T) says it still expects to wrap up a deal to buy from Boliden (BOL-T) two adjacent copper properties in Chile, despite reports that Boliden is working on a deal, which may include an equity offering, to refinance and restructure its lines of credit.
In a prepared release, Falconbridge said, “In view of recent press reports concerning a restructuring of Boliden – contingent on Boliden not selling Lomas Bayas and Fortuna de Cobre – Falconbridge and Noranda wish to alert third parties of their contractual rights to acquire such properties.”
On February 28th, Falconbridge and its parent company, Noranda (NOR-T), signed a letter of agreement with Boliden to acquire, for US$175 million, the Lomas Bayas copper project and the Fortuna de Cobre copper deposit.
Noranda later changed its mind and said it would shuffle off its stake in the Lomas Bayas open-pit mine to Falco. Noranda says the asset is more suited to Falco’s portfolio. Following delays in Falco’s due diligence, the deadline for a definitive agreement was extended to May 18th. Falco says it expects to meet the deadline.
The addition of Lomas Bayas, which churns out about 125 million lbs. copper annually, would increase Falco’s 2001 copper production by 16% to about 397,000 tonnes.
Last week, Boliden acknowledged that it was holding discussions with its lenders and potential investors regarding a restructuring. The company did not comment on the possible sale of the two Chilean assets.
Be the first to comment on "Falconbridge states claim to Chilean projects"