TORONTO, December 18, 2017 /PRNewswire/ --
First Quantum Minerals Ltd. ("First
Quantum" or the "Company", TSX Symbol "FM") today announced
that it has entered into a framework agreement with Northern
Dynasty Minerals Ltd. ("Northern Dynasty") (TSX: NDM) which
contemplates that an affiliate of the Company will subsequently
execute an option agreement with Northern Dynasty (the "Option
Agreement"). Within five business days of the execution of the
framework agreement, the affiliate of the Company will make a
payment of US$37.5 million ("Early
Option Price Instalment") to Northern Dynasty. The Early Option
Price Instalment will be applied solely for the purpose of
progressing the permitting of the Pebble Project.
The term of the option granted by the Option Agreement will be
for a period of four years from the date of satisfaction of certain
conditions precedent, with a right to extend the term of the option
for a further period of two years. The option price for the initial
four years is US$150 million
("Option Price") payable in equal tranches of US$37.5 million, with the Early Option Price
Instalment being credited against the Option Price. All of the
Option Price will be applied to advancing the permitting process
for development of the Pebble Project. The Option Agreement will
entitle the affiliate to earn a 50% interest in the Pebble Limited
Partnership, which is the owner of the Pebble Project in
Alaska by investing an additional
total amount of US$1.35 billion in
the Pebble Limited Partnership. The entry by an affiliate of the
Company into the Option Agreement is contingent upon due diligence
being completed to the satisfaction of the Company, necessary
regulatory approvals being obtained and the successful negotiation
of the final form of the Option Agreement and associated commercial
agreements. Finalization and execution of the Option Agreement and
associated commercial agreements is expected to occur early in Q2
2018.
Philip Pascall, Chairman and CEO,
commented: "The Option Agreement is an important opportunity to
carry out a detailed assessment of the Pebble Project which is
widely acknowledged to be one of the outstanding unmined copper
projects in the world, estimated to contain some 26 million tonnes
of copper, 70 million ounces of gold and 1.5 million tonnes of
molybdenum in measured and indicated resources at a 0.3% copper
equivalent cut off. We are very aware of the environmental and
social sensitivity of this project and will utilize the lengthy
option period to apply our extensive project development and
operating experience to ensure that this project can be developed
with the support of stakeholders.
"Concurrently, our main objectives remain the successful
delivery of our Cobre Panama project, management of our balance
sheet and the provision of a return to shareholders outside of
share appreciation.
"We believe a successful outcome to the permitting process for
Pebble would deliver the potential for further growth in copper for
First Quantum well into the future."
CONFERENCE CALL & WEBCAST
First Quantum will host a conference call and webcast to discuss
the transaction as follows:
Date: December 19, 2017
Time: 8:00 am (Eastern); 1:00 pm (GMT); 5:00 am (Pacific)
Webcast: www.first-quantum.com
North America: (toll free) +(877)-291-4570
North America and international: +1-(647)-788-4919
Dial in: United Kingdom: (toll free) +0-800-051-7107
Available from noon (Eastern) on December 19, until 11:59 pm (Eastern) on
January 1, 2018
North America: (toll free) +(800)-585-8367
Replay: North America and international: +1-(416) 621-4642
Passcode: 7967738
On Behalf of the Board of Directors of First Quantum Minerals
Ltd.
G. Clive Newall
President
For further information, visit our website at
http://www.first-quantum.com
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION
Certain statements and information herein, including all
statements that are not historical facts, contain forward-looking
statements and forward-looking information within the meaning of
applicable securities laws. The forward-looking statements include
estimates, forecasts and statements as to the Company's
expectations regarding completion of due diligence, receipt of
regulatory approvals, negotiation of and entering into the Option
Agreement, payment of the Option Price, the process of permitting
at the Pebble Project, future profitability of the Pebble Project,
and expected timing relating to the foregoing. Often, but not
always, forward-looking statements or information can be identified
by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate" or
"believes" or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved.
With respect to forward-looking statements and information
contained herein, the Company has made numerous assumptions
including among other things, assumptions about the due diligence
process, the Company's ability to negotiate the Option Agreement
and other definitive agreements, the permitting process, and the
ability of each of the Company and Northern Dynasty to achieve
their goals, including with respect to the Option Agreement and the
Pebble Project. Forward-looking statements and information by their
nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements or information. These factors include, but are not
limited to, the outcome of due diligence investigations, the
permitting process, potential social and environmental challenges,
future production volumes and costs, the temporary or permanent
closure of uneconomic operations, costs for inputs such as oil,
power and sulphur, political stability in Zambia, Peru,
Mauritania, Finland, Spain, Turkey, Panama, Argentina, the
United States and Australia, adverse weather conditions in
Zambia, Finland, Spain, Turkey, Mauritania and Panama, labour disruptions, power supply,
mechanical failures, water supply, procurement and delivery of
parts and supplies to the operations, and the production of
off-spec material.
See the Company's Annual Information Form for additional
information on risks, uncertainties and other factors relating to
the forward-looking statements and information. Although the
Company has attempted to identify factors that would cause actual
actions, events or results to differ materially from those
disclosed in the forward-looking statements or information, there
may be other factors that cause actual results, performances,
achievements or events not to be anticipated, estimated or
intended. Also, many of these factors are beyond the Company's
control. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company undertakes
no obligation to reissue or update forward-looking statements or
information as a result of new information or events after the date
hereof except as may be required by law. All forward-looking
statements and information made herein are qualified by this
cautionary statement.
North American contact: Sharon
Loung, Director, Investor Relations, Tel: +(647)-346-3934
Fax: +(604)-688-3818 Toll Free: +1-(888)-688-6577 E-Mail:
sharon.loung@fqml.com; United Kingdom contact: Clive Newall, President, Tel: +44-140-327-3484
Fax: +44-140-327-3494 E-Mail: clive.newall@fqml.com