26th Nov 2018 07:52
LONDON (Alliance News) - Rio Tinto PLC said Monday it sold its majority stake in a uranium mine in Namibia for up to USD106.5 million to China National Uranium Corp Ltd as it continues to focus on its core assets.
The FTSE 100-listed mining giant has agreed to sell its 69% stake in Rossing Uranium Ltd - which owns the Rossing mine - for an initial USD6.5 million in cash on completion. A further USD100 million contingent consideration is payable following completion, linked to uranium spot prices over the next seven years.
Rio also will receive a cash payment if China National Uranium sells the Zelda 20 mineral deposit during an unspecified restricted period after completion of the deal.
The maximum consideration cap for the deal, however, will be USD106.5 million. The deal remains subject to regulatory approval in Namibia. The transaction is expected to complete in the first half of 2019.
"The sale of our interest in Rossing once again demonstrates our commitment to strengthening our portfolio and focussing on our core assets, which deliver sector leading returns in the short, medium and long term," Rio Chief Executive Officer Jean-Sebastien Jacques said.
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