Quadra FNX Completes Joint Venture With Sumitomo for Development of Sierra Gorda
VANCOUVER, - Quadra FNX Mining Ltd. reported that Quadra FNX with Sumitomo Metal Mining Co., Ltd and Sumitomo Corporation have completed the formation of the previously announced Joint Venture to develop the Sierra Gorda copper-molybdenum project in Chile. Going forward Quadra FNX, with 55% of the Joint Venture and Sumitomo with the remaining 45%, will conduct activities through Sierra Gorda SCM ("SGJV"), a subsidiary of Quadra FNX and the existing owner of Sierra Gorda.
Upon closing Sumitomo made the first cash contribution of $360 million to SGJV as part of its initial $724 million funding obligation and Quadra FNX was reimbursed $167 million for amounts advanced by it to SGJV from May 2011 to closing. Quadra FNX now has a cash balance of approximately $1.1 billion, excluding its 55% share of cash in SGJV. Paul Blythe, President & CEO said, "Our Sierra Gorda project is a long-life asset that is transformational to Quadra FNX and this Joint Venture provides both the capital and a partner that has a long history of industry experience. We look forward to a successful relationship with Sumitomo."