Zijin Mining signs share purchase agreement with Freeport-McMoran to acquire remaining interest in the lower zone of the Timok copper and gold mine in Serbia for up to US$390 million

On November 3, 2019, Zijin Mining Group Co., Ltd. ("Zijin") announced that it had entered into a Share Purchase Agreement and a Deferred Payment Agreement, with Freeport-McMoRan Inc. ("Freeport") to acquire Freeport's interest in the Lower Zone of the Timok copper-gold mine in Serbia and certain Serbian exploration licenses. The purchase price consists of the sum of an initial purchase price amount of US$240 million plus 0.4% of the net proceeds from the sales of all products from the Lower Zone of the Timok copper-gold mine, once production commences, up to a maximum amount of US$150 million (for a potential total consideration of up to US$390 million). Zijin completed the acquisition of a 100% equity interest in Nevsun Resources Ltd. ("Nevsun") on March 12, 2019. Nevsun owns a 100% interest in the Upper Zone and a 46% interest in the Lower Zone of the Timok copper-gold mine in Serbia. After completion of this acquisition, Zijin will own a 100% interest in both the Upper Zone and Lower Zone of the Timok copper-gold mine in Serbia, and five exploration licenses in the surrounding area. Fasken represented Zijin on this transaction, with a team including John Turner, Michael Boehm, Lei Huang, Brad Freelan, Janet Howard, Alex Nikolic, Florind Polo, Michael Bourassa, Sarah Gingrich, Perry Feldman, Mitchell Thaw, Huy Do and Jodi Katz.