Talvivaara Mining shareholders green light sale of Sotkamo operations

By Caroline Salls

Pittsburgh, Aug. 11 – Talvivaara Mining Co. plc’s shareholders approved a sale of the assets related to the company’s Sotkamo mining operations to Terrafame Ltd. at an extraordinary general meeting held on Thursday, according to a company news release.

In addition to the sale of the mining operations, Talvivaara and Terrafame agreed in June to a settlement of Talvivaara’s guarantee liabilities under a loan and streaming holiday agreement with a principal amount of about €14 million and a zinc in concentrate purchase agreement amounting to €203.4 million.

Talvivaara said the purchase price for the assets sold consists of a full and final settlement of the guarantee liabilities under the holiday and streaming agreement and a cash component of €1.4 million payable by Terrafame, which was paid at closing.

The assets sold include the lime plant needed for the Sotkamo operations, a laboratory and rights to the geological, laboratory and production-related data associated with the Sotkamo mine.

According to the release, the agreements included a cancellation clause under which the transactions would have become null and void if the shareholders did not approve them.

Talvivaara is a nickel mining company based in Espoo, Finland.

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