Eurasian Natural Resources Corporation PLC announced that it has reached an agreement with First Quantum Minerals Ltd to acquire their residual claims and assets in respect of the Kolwezi Tailings project, and the Frontier and Lonshi mines and related exploration interests, all located in the Katanga Province of the Democratic Republic of Congo and to settle all current legal matters relating to these interests for total consideration of USD 1.25 billion.

The transaction encompass a resolution relating to the Kolwezi Tailings project and the transfer of the Kolwezi processing plant to ENRC, enabling ENRC to commence the development of these operations. The transaction also provides for the release of any claims that FQM may have in relation to Frontier and Lonshi.

This will provide ENRC with an opportunity to acquire the underlying licences and ultimately to develop these projects and discussions are currently underway. However, there can be no assurance as to the outcome of the licence discussions.

The total consideration comprises USD 750 million payable on closing, together with a deferred consideration of USD 500 million in the form of a 3-year Promissory Note with an interest coupon of 3% which is payable annually in arrears.

Under the terms of the transaction, ENRC will acquire, with certain limited exceptions, all of FQM‟s assets and property either physically located within the DRC or relating to the operations formerly carried out by FQM and its subsidiaries in the DRC, through the acquisition of:

1. Kolwezi Investments Limited and its subsidiary Congo Mineral Developments Limited (a 65% shareholder in KMT (in liquidation), the former developer of the Kolwezi Tailings project);

2. Frontier SPRL (the former owner/operator of the Frontier Mine);

3. Compagnie Minière de Sakania SPRL (the former owner/operator of the Lonshi Mine); and

4. Roan Prospecting & Mining SPRL (the holder of certain assets relating to the Kolwezi Tailings Project).

The processing facility at the Kolwezi Tailings project (which is under construction) is expected to be transferred to ENRC at closing.

Mr Felix Vulis CEO of ENRC said, “We are pleased to have secured agreement on these significant issues for our company. We have gained material assets and clarified the ownership structures in order to facilitate maximum value creation for ENRC’s shareholders, the DRC and its people.”