On November 17, 2016, China Molybdenum Co., Ltd (“CMOC”) announced that all conditions precedent set out in the Stock Purchase Agreement with Freeport-McMoRan Inc. (“Freeport”) to acquire their indirect 56% interest in the world-class producing Tenke Fungurume copper-cobalt mine (“Tenke”), located in the Democratic Republic of the Congo (“DRC”), transaction completed.
The mine lies in the southeast of the DRC, the central African country which boasts about one third of the world's known cobalt reserves, and 10 percent of its copper reserves.
The agreed purchase price was US$2.65 billion in cash plus contingent consideration of up to US$120 million.
This is the second large global acquisition within two month announced by CMOC. In September, CMOC purchased Brazilian assets from Anglo American plc for US$1.5 billion.
CMOC is a joint stock company established in the People's Republic of China. The Company is primarily engaged in the mining and processing, smelting, deep processing, trade, research and development of molybdenum, tungsten, gold and other precious metals.
Osler, Hoskin & Harcour LLP represented CMOC with a team led by Marc Kushner that included Michael Budabin McQuown, Amma Anaman, Alix Morse, Douglass Dawson, Nathan Whitaker and Jillian Mulroy (Corporate); Paul Seraganian and Jennifer Lee (Tax); Shuli Rodal (Competition/Antitrust & Foreign Investment) and Andrew Herr (Financial Services).
Osler was awarded “Deal of the Year” for its role in representing China Molybdenum Co., Ltd
(CMOC), in its US$2.65-billion agreement to acquire Freeport-McMoRan’s indirect 56% interest in the Tenke Fungurume copper-cobalt mine.