Tiger Resources' $260M Congo asset sale to Chinese firm collapses
Tiger Resources will not be selling its Democratic Republic of the Congo mining and exploration assets to Sinomine HK for $260M.
Tiger Resources said on Friday that terms acceptable to the company were not acheived and it issued a notice of termination to Sinomine HK.
The assets comprised of the Kipoi Project, Lupoto Project and La Patience permit. Announcing the sale in January, Tiger said it was facing "operational and financial headwinds". The company is listed on the ASX but currently suspended.
The Kipoi Copper Project is operated by Société d’Exploitation de Kipoi, a 95%-owned subsidiary of Tiger. It is located 75km northwest of Lubumbashi, the capital of Katanga Province, and in the central part of the Katanga Copper Belt. The Kipoi Mining Licence covers an area of 55sq km and contains a 12km-long extensively copper-cobalt mineralised segment. As of December 2014, mineral resources for the Kipoi Copper Project were 938,000 tonnes of copper.
Tiger Resources says it is re-evaluating the asset.
"Whilst the Company has been negotiating with Sinomine HK it has also been working on a new Life of Mine Plan (LOMP) for its Kipoi copper assets, which is expected to be completed within the next 6-8 weeks," said the company in a news release.
"The Company will update Shareholders on the LOMP results as soon as this study is completed. The Company will also update its shareholders on its operations in the Quarterly report to be released on or before 31 July 2018."
Sinomine is a geotechnical services company based in China with business lines in mineral exploration, mining project investments and operations, as well as technical and associated supporting services. Sinomine has an international network of operations, including existing operations in the DRC and across Africa. The company is listed on the Shenzhen Stock Exchange with a market capitalisation of over $530 million.