THE BOURSE WHISPERER: Tiger Resources (ASX: TGS) has completed the acquisition of the remaining 40 per cent shareholding in Société d’Exploitation de Kipoi SA (SEK).
SEK is the owner of the Kipoi copper project in the Democratic Republic of Congo (DRC).
The acquisition follows the drawdown of US$50 million against a finance facility the company has with Taurus Mining Finance Fund.
SEK now becomes a wholly-owned subsidiary of Tiger as a result of the acquisition.
A 2.5 per cent gross turnover royalty payable by SEK will be retained by the vendor Gécamines, and Tiger indicated it also intends to cede a 5 per cent interest in SEK to the DRC Government to bring the mining title into alignment with mining law and regulations in the DRC.
“The acquisition of the remaining 40 per cent of SEK offers Tiger a compelling opportunity to acquire a producing copper asset we already operate,” Tiger Resources managing director Brad Marwood said in the company’s announcement to the Australian Securities Exchange.
“We now have a clear, low capital intensity growth profile to 50,000 tonnes per annum and with ownership of the Kipoi project rationalised we are able to explore a broader range of options to put in place a long term financing structure for the company.”