“Roman Copper unequivocally confirms its readiness to implement all the actions and investments requested by the government since the open auction for Cupru Min on March 26, 2012,” the company said in a statement.
Roman Copper, owned by Toronto-headquartered investment bank Bayfront Capital Partners, won an outcry auction to buy 100% in Cupru Min Abrud for EUR200.77 million, outbidding Australian Oz Minerals and Dutch-based Dundee Holding BV.
The purchase contract was due for signing on April 6, but the Romanian authorities said the deal was cancelled because the two parties could not reach a satisfying agreement on the terms of the deal.
Economy Minister Lucian Bode said the tender would be rescheduled.
However, Roman Copper the following day said the negotiations had been successful and the Canadian part agreed to new conditions on the deal.
“As previously disclosed, Roman Copper’s team and the Romanian government’s negotiators agreed on the terms and conditions of the acquisition contract in the late evening of Friday, April 6 2012. These terms included an undertaking by Roman Copper to accept additional financial and other obligations that were not required in the original tender documentation,” the company said.
“We are fully aware of the importance of this transaction to all concerned, including the future well-being of Romania’s mining sector and the credibility of the Romanian government’s privatization process,” it added.
Cupru Min is Romania’s largest copper producer. The company’s main asset is the Rosia Poieni mining perimeter, which is estimated to hold 60% of the country’s copper reserves.
Cupru Min has a share capital of RON24.18 million and is fully owned by the Economy Ministry. The ministry has tried to sell the company twice before.