As part of its participation in the consortium, Valhalla advanced $750,000 to fund part of the bid bond in respect of the privatization auction for the Romanian company.
Roman Copper, owned by Toronto-headquartered investment bank Bayfront Capital Partners, has won an outcry auction in March to buy 100% in Cupru Min for EUR200.77 million.
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 Canadian company had refused a series of conditions imposed by the government and rescheduled the auction to an unspecified date.
“Roman Copper has been negotiating with the Romanian government to conclude a formal agreement for the purchase of all of the shares of Cupru Min Abrud. To date, the parties have been unable to reach a formal agreement to formalize the transaction,” Valhalla said in a statement.
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.
Headquartered in Vancouver, Valhalla Resources is a mineral exploration company focusing on the discovery and development of base and precious metal opportunities in Turkey and Romania.
Its main assets are the Sarp Properties in northwestern Turkey and the Bratosin Hill property in the historic Golden Quadrilateral region of Romania.