The two companies are seeking a specific-performance order to force Boliden to close the sale of the Lomas Bayas copper project and the adjacent Fortuna de Cobre copper deposit. Boliden reached a deal on Feb. 28 to sell the two projects to Noranda and Falconbridge for US$175 million, less the project’s net debt of US$110.6 million. Noranda later changed its mind and said it would shuffle off its stake to Falco.
The claim also seeks damages of $250 million.
Noranda and Falco are asking the court to declare that the February letter of intent is binding on Boliden. Falco had executed closing documents for the sale on May 18, just as Boliden reached an agreement with Swedish investors to restructure its debt. The agreement was conditional on retaining Lomas Bayas and Fortuna de Cobre.
Noranda and Falco charge that Boliden’s last-minute cancellation of the agreement was a breach of good faith. They allege Boliden had agreed to deal exclusively with Noranda and Falco with respect to the two properties.
Compania Minera Lomas Bayas and Compania Minera Boliden Westmin Chile, the Boliden subsidiaries that own Lomas Bayas and Fortuna de Cobre, are also named as defendants in the suit.
Boliden says it was unable to “reach agreement with Noranda and Falconbridge with respect to the sale of the Chilean assets on terms satisfactory to its board of directors, as provided for under the letter of intent signed by the parties on February 28.”
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