TORONTO, Oct. 3, 2014 /CNW/ - Magris Resources Inc. ("Magris" or the "Company"), headquartered in Toronto, Canada, in partnership with CEF Holdings Ltd ("CEF") and Temasek, today announced a definitive agreement to acquire the Niobec mine ("Niobec") from IAMGOLD for US$500 million in cash at closing and a US$30 million contingent payment which will be payable upon commercial production of an adjacent rare earth element deposit ("REE"). Niobec, located in Saint-Honoré-de-Chicoutimi in the Saguenay region, Quebec, is one of world's three primary niobium producers.
"We are delighted that we have been able to reach an agreement to acquire Niobec from IAMGOLD," said Aaron Regent, Chairman and CEO. "Niobec has many of the characteristics we've been looking for…strong market fundamentals for its core product, substantial operating margins, and a long mine life in an attractive jurisdiction. We are very impressed with the quality of the management team and are looking forward to working with them to maximize the full potential of the operation while at the same time only doing so in a safe and environmentally responsible manner."
The transaction is targeted to close in the fourth quarter of 2014, subject to the receipt of regulatory approvals.
National Bank of Canada and The Bank of Nova Scotia have committed and underwritten a US$250 million amortizing term loan and a US$25 million revolving credit facility to assist with funding the transaction. The commitment for the financing is subject to satisfaction of certain customary conditions precedent for an acquisition financing.
Magris is an emerging mining company that was formed to build and grow a significant diversified mining platform. Magris is led by Aaron Regent who previously served as President and Chief Executive Officer of Barrick Gold, and President and Chief Executive Officer of Falconbridge Ltd., and a team of veteran mining executives with a track record of managing best-in-class operations in an environmentally responsible manner with a commitment to maintaining the highest standards in safety and community relations.
About CEF Holdings Ltd
CEF Holdings Limited is a Hong Kong based investment company which is owned 50% by Cheung Kong (Holdings) Limited and 50% by the Canadian Imperial Bank of Commerce ("CIBC"). Cheung Kong (Holdings) Limited is the publicly-listed flagship company of the Cheung Kong Group of companies, the Hong Kong based multi-national conglomerate with a combined market cap of the Group in excess of US$100 billion. CIBC is a leading North American financial institution with operations around the world. CEF is an investor in significant resource assets on a global basis.
Temasek is an investment company based in Singapore. Supported by 11 offices globally, Temasek owns a S$223 billion (US$177 billion) portfolio as at 31 March 2014.
Temasek's investment themes centre on: Transforming Economies; Growing Middle Income Populations; Deepening Comparative Advantages; and Emerging Champions. Its portfolio covers a broad spectrum of industries: financial services; telecommunications, media and technology; transportation and industrials; life sciences, consumer and real estate; as well as energy and resources.
SOURCE: Magris Resources Inc
For further information:
Media Contact: Aaron Regent, Magris Resources Inc., 416 901 9877, [email protected]