Mining Journal reported that Talvivaara Mining Company plc has celebrated the fourth anniversary of its listing in London with a reception at the Finnish embassy. This week the company also announced a move to acquire total ownership of its key operating subsidiary for EUR 300 million.

The base metals miner signed an agreement with steel maker Outokumpu Oyj to purchase an additional 4% in Talvivaara Sotkamo Limited for EUR 60 million, which it said would be funded through existing cash resources and financing facilities. Talvivaara's agreement also provides an option to acquire the remaining 16% of its subsidiary for EUR 240 million at any time before March 31st 2012.

Outokumpu gained the stake in the operating subsidiary (and an option on up to 5% in the parent company) in 2004 when Talvivaara acquired the rights to the eponymous deposit at Sotkamo for EUR 1.

Mr Pekka Perä CEO of Talvivaara said that "This transaction provides Talvivaara with improved access to the cash flow generated by Talvivaara Sotkamo through the increased ownership in the operating subsidiary. This is increasingly important as we continue our production ramp up and consider further expansion in the future."

Liberum said the EUR 300 purchase for the final 20% represented an 11% discount to the EUR 337 million value on the day of the announcement. The investment bank said that "This is a good piece of business for Talvivaara, and the transaction appears well structured in its favor. This acquisition allows Talvivaara to take outright ownership of a high growth and largely de risked world class asset."

As part of the Talvivaara transaction, state owned Solidium Oy has agreed to purchase Outokumpu's entire 4.3% stake in the parent company for EUR 60 million. Solidium is a limited liability company whose mission statement requires it to strengthen and stabilize Finnish ownership in nationally important companies.

(Sourced from www.miningmagazine.com)