Freeport-McMoRan To Sell Its Stake In Candelaria/Ojos To Lundin Mining

(RTTNews) - Freeport-McMoRan Inc. (FCX) said Monday that it has agreed to sell its 80% ownership interest in the Candelaria/Ojos del Salado copper mining operations and supporting infrastructure to Lundin Mining Corp. (LUN.TO) for $1.8 billion in cash and contingent consideration of up to $0.2 billion, calculated as 5% of net copper revenues in any annual period over the next five years when the average realized copper price exceeds $4.00 per pound.

Freeport-McMoRan estimates after-tax net proceeds from the deal of about $1.5 billion, excluding contingent consideration.

The interests include all of Freeport-McMoRan's interests in the Candelaria/Ojos mining district. As of December 31, 2013, Candelaria/Ojos had consolidated recoverable reserves totaling 4.0 billion pounds of copper and 1.1 million ounces of gold. Consolidated production for the first six months of 2014 totaled 169 million pounds of copper and 42 thousand ounces of gold.

The deal has an effective date of June 30, 2014, and is expected to close by year-end 2014.

Freeport-McMoRan expects to record an approximate $450 million after-tax gain on the deal.