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HUN Mining agrees to sell mining units to Davies Corporation

The board of directors of HUN Mining announced late Monday the signing of a term sheet to sell most of the company’s subsidiaries to Davies Corporation.

The decision to sell was taken because of a lack of financing for the mining units and "financial problems caused to the company by third parties", the board said.

Before the sale, intellectual property, land and mineral exploration rights will be concentrated in the units while HUN Mining keeps a refuse pile of minerals with the aim of selling it to a third party.

Davies Corporation plans to acquire a 29% stake in HUN Mining and has negotiated to buy shares in the company from Servertech.

The board reiterated plans to acquire a stake in Dutch virtual mobile telecommunications company 6GMobile in a share swap.