Freeport-McMoRan Closes $1.8 Bln Sale Of Interests In Candelaria/Ojos

(RTTNews) - Freeport-McMoRan Inc. (FCX) said Monday it completed the sale of its 80 percent ownership interest in the Candelaria/Ojos del Salado copper mining operations and supporting infrastructure to Lundin Mining Corp (LUMI, LUN.TO) for cash consideration of $1.8 billion, before closing adjustments.

The interests include all of FCX's interests in the Candelaria/Ojos mining district in Chile, which had consolidated recoverable reserves of 4 billion pounds of copper and 1.1 million ounces of gold as of December 2013 and consolidated production for the first nine months of 2014 of 246 million pounds of copper and 62 thousand ounces of gold.

FCX plans to use after-tax net proceeds from the transaction of about $1.5 billion to repay indebtedness and expects to record an about $450 million after-tax gain on the transaction in fourth-quarter 2014.

Under the terms of the agreement, FCX could also receive 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.

FCX is a premier U.S.-based natural resources company with an industry-leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile. FCX is the world's largest publicly traded copper producer.