Freeport-McMoRan Inc.
07/27/2021 | Press release | Distributed by Public on 07/27/2021 07:05
Material Event (Form 8-K)
Other Events.
On July 26, 2021, Freeport-McMoRan Inc.'s ('FCX') 56% owned subsidiary, Koboltti Chemicals Holdings Limited, entered into an agreement to sell its specialty cobalt business based in Kokkola, Finland ('Freeport Cobalt') to Jervois Mining Limited ('Jervois'). This business was no longer strategic to FCX following the sale of its interests in Tenke Fungurume in 2016 and its cobalt refinery in Kokkola in 2019.
Under the terms of the transaction, Jervois will acquire 100% of Freeport Cobalt for $85 million (in cash and Jervois shares) plus working capital to be determined at closing. In addition, FCX and its noncontrolling interest partners will have the right to receive up to $40 million in contingent cash consideration based on the future performance of the business.
Under the terms of the agreement, the consideration at closing may include up to 9.9% of Jervois shares. Assuming a full allotment of shares, FCX currently estimates its net share of the proceeds, excluding contingent consideration, would approximate $100 million cash plus its pro rata 56% share of 9.9% of Jervois shares.
The financial contribution of the business was not significant to FCX's financial results during 2020 and the first half of 2021.
The transaction is subject to the completion of Jervois financing and other customary closing conditions and is expected to close in the third quarter of 2021.