Talvivaara and Terrafame have executed agreements on the sale of mining-related assets to Terrafame
(Thomson Reuters ONE) -
Stock Exchange Release
Talvivaara Mining Company Plc
1 July 2016
Talvivaara and Terrafame have executed agreements on the sale of mining-related
assets to Terrafame
Talvivaara Mining Company Plc ("Talvivaara" and "Company") and Terrafame Ltd
("Terrafame") have on 30 June 2016 signed agreements, in which the parties agree
on the sale of Talvivaara's assets related to the Sotkamo mining operations and
settlement of Talvivaara's guarantee liabilities under the Loan and Streaming
Holiday Agreement ("Holiday Agreement"), with the principal amount of
approximately EUR 14 million (including interest up until 30 June 2016), and the
Zinc in Concentrate Purchase Agreement ("Streaming Agreement"), amounting to
approximately EUR 203.4 million. The assets sold include, among others, the lime
plant needed for the Sotkamo operations, laboratory, as well as rights to the
geological, laboratory and production related data associated with the Sotkamo
mine. The agreements include a cancellation clause whereby the transactions
contemplated by the agreements shall become null and void in the event the
extraordinary general meeting of shareholders of Talvivaara to be separately
convened to address the matter does not approve the transactions under the
agreements.
In addition, the parties have agreed on the transfer of the laboratory personnel
to Terrafame as old employees, as well as on the possibility for Terrafame to
recruit certain of Talvivaara's personnel currently providing services related
to operation of the mine. The parties have agreed to terminate the service
agreement and the lime plant lease agreement of 19 November 2014, which were
transferred to Terrafame on 14 August 2015 with immediate effect.
The purchase price for the assets sold consists of two components: (i) a full
and final settlement of the guarantee liabilities of the Company under the
Holiday Agreement and the Streaming Agreement, and (ii) a cash component of EUR
1.4 million payable by Terrafame, which has been paid to the Company at closing.
The extraordinary general meeting of shareholders will be separately convened to
address the matter. Certain shareholders of the Company, comprising of Solidium
Ltd and Mr. Pekka Perä, CEO of Talvivaara, who together represent approximately
20 per cent of the ordinary shares currently issued and outstanding (excluding
192,883,000 shares held in treasury by the Company not carrying any voting
rights), have preliminary agreed to vote in favour of the transaction at the
extraordinary general meeting.
Should the general meeting not approve the transactions under the agreements,
the agreements will be cancelled and the transactions revoked and, consequently,
the parties would resume the positions existing immediately prior to signing the
agreements.
Under the agreements, all main assets of Talvivaara previously generating income
for Talvivaara have been transferred to Terrafame. However, the arrangement will
materially improve the possibility for the completion of Talvivaara's corporate
restructuring proceedings and facilitate the development of Talvivaara's new
business opportunities. The agreement has no effect on the identified
restructuring debts of the Company, including the receivables of certain
commercial banks and Finnvera Plc.
Despite the transaction published today, there can to date be no guarantee that
Talvivaara will eventually be able to successfully complete the corporate
restructuring proceedings.
Enquiries
Talvivaara Mining Company Plc. Tel. +358 20 7129 800
Pekka Perä, CEO
Pekka Erkinheimo, Deputy CEO
Talvivaara and Terrafame have executed agreements on sale of assets:
http://hugin.info/136227/R/2024897/752477.pdf
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originality of the information contained therein.
Source: Talvivaaran Kaivososakeyhtiö Oyj via GlobeNewswire
[HUG#2024897]
Unternehmensinformation / Kurzprofil:
Datum: 01.07.2016 - 16:38 Uhr
Sprache: Deutsch
News-ID 481271
Anzahl Zeichen: 4853
contact information:
Town:
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Kategorie:
Business News
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"Talvivaara and Terrafame have executed agreements on the sale of mining-related assets to Terrafame"
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Talvivaaran Kaivososakeyhtiö Oyj (Nachricht senden)
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