(Ecofin Agency) - Mining company Tiger Resources concluded a purchase agreement on Monday with Chinese company Sinomine HK to sell its copper-cobalt assets in DRC valued at about $260 million. The related assets include Kipoi and Lupoto projects and the “la patience” permit.

According to terms stated, the sale amount include $250 million cash payments and the assumption of liabilities by Sinomine HK of $10-million.

Tiger Resources plans to use the $230 million first cash installment to pay its outstanding bank debt which stood at $209 million at November 30, 2017.

In addition, the company will receive royalty payments from revenue generated from the sale of copper and cobalt by Sinomine HK for an amount of up to $20-million.

“After careful consideration of the strategic options, the board believes this transaction provides shareholders with the greatest certainty of value realisation and that, on balance, it is in the best interests of shareholders, employees, the Kipoi operations and the future potential of Tiger,” commented David Frances, the company’s chairman.

The transaction’s closing still depends on a number of conditions including shareholders’ approval. Once it is, Tiger, plans to continue to be listed on ASX stock exchange where its shares’ trading has been suspended for almost a year. It will then plan its future both financially and operationally.   

Louis-Nino Kansoun