Nzuri Copper Ltd. said Dec. 13 that it signed a deal to sell a 14.76% stake in the company to Huayou International Mining (Hong Kong) Ltd., a subsidiary of Shanghai-listed Zhejiang Huayou Cobalt Co. Ltd, for A$10 million.
The sale was priced at 25.07 cents per share and the investment will consist of two tranches. The company expected to complete tranche one, a A$6.6 million placement of 26,475,716 shares, on or before Dec. 20 and is due to receive tranche two, which is a A$3.4 million loan funding convertable into shares, on or before Jan. 10, 2018.
Upon completion, Huayou will be entitled to nominate one representative to the board of Nzuri Copper. Proceeds will be used for ongoing development at Nzuri Copper's Kalongwe copper-cobalt project in the Democratic Republic of the Congo, including test work, scoping study and explorations in 2018, as well as for working capital. A recent feasibility study valued the project at US$82 million with an internal rate of return of 55%.
