Chapter 274: Even Dreams Must Be Taken Away
While Alice and her team began reaching out to Climber Fund, Cristos returned to Freeport Copper & Gold's headquarters to meet CEO Terrence.
Terrence didn't appear to be in a good mood. Seeing Cristos enter, he merely said, "Sit."
"Is there an issue at the copper mine or the smelter?" Cristos, who rarely took time off but had done so to accompany his daughter, presumed something serious had happened.
"Just got news from Indonesia," Terrence sighed. "A group of protesters is again accusing us of colonialism at our Grasberg copper-gold mine. Some idiots from various activist groups gathered outside our Indonesian office, demanding we leave."
Terrence was both irritated and helpless. Such occurrences had been frequent since Grasberg became operational.
Grasberg was the largest gold mine and second-largest copper mine globally, boasting immense high-grade reserves. Thanks to Freeport's advanced extraction technology and efficient management, the mine produced an endless flow of wealth.
Yet, while locals enjoyed benefits from their investments, some believed Freeport extracted disproportionate profits, causing ongoing disputes. Undoubtedly, Grasberg was Freeport's most significant asset—without it, the company wouldn't be where it was today.
"Has the issue been resolved?" Cristos knew this wasn't his responsibility but still asked out of courtesy.
"The Indonesian government intervened," Terrence replied. "But these activists aren't my biggest concern. It's the Indonesian government itself."
Cristos raised an eyebrow questioningly.
"There are internal discussions about revoking our mining license," Terrence explained.
"Our license is valid until 2015, and we legally have extension rights," Cristos countered.
"They're planning to deny renewal unless we surrender more equity," Terrence shook his head. "These people are insatiable."
"As you said, the license still has over a decade left, so there's no rush," Cristos reassured him.
Recognizing this, Terrence relaxed slightly, shifting the topic, "Done handling your personal matters?"
Cristos waved a file. "I finished reviewing Northern Dynasty's Pebble Project and their financing proposal."
"You really are dedicated," Terrence remarked appreciatively. "You took one day off, yet spent it working. I expected your feedback in a week or so; after all, there's no rush."
Terrence knew Cristos's style well and wasn't surprised by his diligence. "So, after reading it, what's your verdict?"
"From my perspective, considering our company's current strategy, I don't see much investment value," Cristos answered honestly.
"But you seem hesitant," Terrence observed astutely.
"Yes," Cristos admitted frankly. He trusted his expertise but couldn't ignore intuition. "You've met that Chinese young man, Li Tang."
"Yes, I sent their €2 billion financing proposal to some partners, but nobody replied," Terrence sighed. "It's not that I don't want to help; their project isn't attractive enough."
"We can't help there," Cristos concurred. But he hadn't come today to discuss that financing.
"Li Tang read this proposal," Cristos raised the Pebble Project file.
"He's an exceptional geologist, but perhaps not a good entrepreneur," Terrence chuckled. "As the discoverer of Talego copper-gold mine, he'll undoubtedly be remembered in exploration history."
Owning the world's largest gold mine (Grasberg) and America's largest copper mine (Morenci), Terrence deeply understood the immense value of giant mineral deposits. Once operational, Talego would become a perpetual cash-generating machine, sustaining a mining empire for decades—every major corporation envied it.
Unfortunately, the rights were firmly held by the Chinese, who had no intention of selling.
"He's extremely bullish about Pebble, abandoning fundraising in favor of actively pursuing an investment," Cristos revealed.
"Why?" Terrence never underestimated anyone. He might mock Li Tang's ambitious €2 billion fundraising plan but respected his exploration prowess.
"I don't know," Cristos shook his head, puzzled. He'd meticulously reviewed Pebble's data but found nothing extraordinary. Yet Li Tang acted as if he'd discovered hidden gold.
"Did he just see this proposal for the first time?" Terrence probed further.
"I believe so," Cristos confirmed. "I'm sure it's his first trip to America."
Terrence possessed keen intuition and grand ambition. He never let opportunities slip away easily.
"I showed the proposal to our technical team," Terrence continued. "They found nothing special—limited deposits and average grades. Yet Li Tang reviewed it briefly and considered it highly investable. Are we missing something?"
"There's genuinely nothing exceptional," Cristos reiterated confidently. "They've identified some porphyry copper-gold mineralization, but grades and tonnage aren't impressive."
"Could Li Tang be a front for Northern Dynasty, creating artificial competition to pressure us?" Terrence suggested skeptically, familiar with such tactics.
"I doubt Collier has enough influence to recruit a renowned expert like Li Tang," Cristos dismissed the idea.
"Then let's stop guessing," Terrence decided. "We'll directly engage Li Tang, see what he's thinking, and test his real capabilities."
Cristos hesitated, contemplating professional confidentiality but ultimately revealed, "They're contacting Climber Fund."
"What?" Terrence reacted instantly.
"Climber Fund is Northern Dynasty's second-largest shareholder with 20%," Cristos explained.
Terrence laughed openly, "Climber Fund loves risk and invests heavily in junior exploration companies. I know their manager personally."
…
Li Tang awaited Alice's update from Climber Fund but unexpectedly received an invitation from Cristos to visit Freeport's headquarters. Upon arrival, he found Terrence waiting alongside Cristos, briefly igniting hope for his €2 billion fundraising.
"Unfortunately, your funding proposal hasn't attracted investors," Terrence immediately informed him.
"I expected as much," Li Tang replied calmly. He knew he'd rushed—the opportunity wasn't ripe yet.
"You don't seem disappointed," Terrence noted, amused.
"Just being realistic," Li Tang admitted.
"But I know you're interested in the Pebble Project and attempting to acquire Northern Dynasty," Terrence revealed the meeting's true purpose.
Li Tang glanced sharply at Cristos, realizing his plan had leaked there.
Seeing Li Tang's silence, Terrence continued bluntly, "We're also interested."
"If Freeport plans to buy Northern Dynasty, I can't compete," Li Tang admitted openly.
"No, we're not competing," Terrence smiled mysteriously.
"We want to collaborate with you," Cristos interjected.
"How exactly?" Li Tang asked, intrigued.
"I've spoken to Climber Fund," Terrence explained smugly. "They've agreed to sell us their 20% stake at current market prices."
Li Tang felt cornered—used to blocking others' paths, he finally faced someone doing it to him.
"You're very proactive," Li Tang stared meaningfully at Cristos.
"We recognize your expertise," Terrence said generously. "We have unmatched acquisition experience. Together, we can fully control Northern Dynasty."
"You still haven't detailed how we'll collaborate," Li Tang pressed further.
"We form a joint company to buy Northern Dynasty, with both parties as shareholders."
"You finance it, and I provide technical expertise?" Li Tang asked.
"No, you must contribute money," Terrence stated firmly. He understood human nature—without financial stakes, people never gave their best efforts. Only significant financial investment ensured dedication.
"Total investment, including future funding rounds, is about $50 million," Terrence handed Li Tang a preliminary investment proposal. It was brief but impressively professional, indicating they'd seriously planned ahead.
Li Tang quickly reviewed the document, realizing Freeport wasn't bluffing—they genuinely wanted the Pebble Project. At their previous meeting, Terrence explicitly stated disinterest. Yet now, his attitude had flipped entirely.
Why the sudden turnaround?
Li Tang looked deeply at Cristos again, realizing the man hadn't helped him much but had gained crucial information.
Yet Li Tang didn't feel betrayed—rather, partnering with Freeport was advantageous, saving him considerable trouble and increasing the likelihood of controlling Pebble.
"Each party invests $25 million for equal 50% ownership?" Li Tang clarified.
"Exactly," Terrence nodded. "We handle acquisitions and coordination; you oversee exploration."
"I'm greedy," Li Tang smiled faintly.
"Oh?" Terrence raised his eyebrows, intrigued.
"I'm willing to invest thirty-five million USD for a 70% stake," Li Tang said, looking directly at Terrence. "Would this arrangement make you more confident about cooperating with me?"
Terrence and Cristos exchanged a glance. Initially, they thought Li Tang would balk at investing even twenty-five million dollars, possibly requesting a reduction in the amount. Yet, unexpectedly, he had voluntarily proposed increasing his stake, clearly demonstrating an extraordinary level of confidence in the Pebble Project. Such optimism was puzzling—everyone had reviewed the same materials, but did Li Tang perceive something others couldn't?
"You're not only arrogant but also reckless!" Cristos harshly remarked, intending to caution Li Tang against overconfidence.
Ignoring Cristos's remark, Li Tang calmly addressed Terrence: "Do you agree to these terms?"
"I never imagined someone would openly declare to my face that he wants to lead Freeport Copper & Gold!" Terrence burst into laughter. "You really are incredibly audacious!"
"Wouldn't be youthful if I wasn't audacious," Li Tang replied nonchalantly.
"I like your style—bold, reckless, and fearless!" Terrence chuckled, though doubts lingered. "But can you really come up with thirty-five million dollars in such a short period?"
"As long as you, Mr. Terrence, provide your fifteen million dollars on schedule, my thirty-five million will certainly arrive promptly," Li Tang assured him confidently.
"Excellent! Decisive!" Terrence laughed again heartily. "I appreciate such a bold partner. This is our first collaboration—I'll follow your lead."
An investment of fifteen million dollars was insignificant for Freeport Copper & Gold, essentially pocket change. Initially uninterested in the Pebble Project, Terrence had now found renewed interest precisely because of Li Tang's involvement. The company regularly allocated hundreds of millions annually to exploration, so this venture was merely testing the waters. Its real purpose was investing in Li Tang himself, particularly given his proven success at Talego copper-gold mine.
When Alice heard that Li Tang had already finalized cooperation with Freeport, she was speechless for a long moment, completely shocked by how swiftly such a major deal had materialized.
"Are you really planning to invest thirty-five million USD in that freezing place in Alaska?" she gasped incredulously.
Li Tang chose not to elaborate too much, merely stating, "Terrence said Freeport's acquisition of Northern Dynasty is practically guaranteed. If we were to do it alone, you said yourself it'd be difficult, especially given Collier's strong opposition."
"I still think the investment amount is too high," Alice insisted.
"They initially asked for twenty-five million—I voluntarily increased our investment," Li Tang replied, noting Alice's lingering anxiety and reassuringly patting her shoulder. "The collaboration with Freeport will be handled directly by your father. On our end, if you wish, you could stay here and work alongside him."
"And what about Australia?" Alice felt she would need to split herself in two to manage both tasks.
"Australia can wait."
"No, I don't want to work alongside my father. We'd just argue every day," Alice firmly declined Li Tang's suggestion. "I'd rather return to Australia. You can handle this project yourself."
"But I'm unfamiliar with the investment environment in the U.S.," Li Tang admitted helplessly.
"I'll leave Catherine with you. She knows the investment climate here extremely well," Alice decided, assigning her most capable assistant to Li Tang.
"Alright," Li Tang agreed. After clearly defining their roles, he flew back to Yanjing immediately to arrange financing.
The total investment was fifty million USD, but it wouldn't be funded all at once. Initially, only twenty million dollars was required, mainly to secure control of Northern Dynasty Minerals. The remaining thirty million would be raised later for additional exploration funding.
Northern Dynasty's shares available on the secondary market were limited, as many shareholders viewed them as long-term lottery tickets—holding them indefinitely provided a perpetual chance to strike it rich. This allure was precisely why junior exploration companies attracted investors.
However, such complexities posed little challenge for Freeport's acquisition team. They swiftly contacted several major shareholders, quickly acquiring 10% of circulating shares. Three days later, continuous purchases increased their stake to 20%, triggering a mandatory takeover offer. Concurrently, they publicized their acquisition of a 20% stake from Climber Fund, formally submitting a non-binding offer to Northern Dynasty's board.
Collier was furious. The takeover had begun abruptly without any prior warning—a clearly hostile move. But he vowed to teach these aggressors a lesson, confident he possessed decisive voting rights. Unless nearly all shareholders united against him, he remained safe. However, Collier knew clearly that if the leader of such a united front was the Chinese man, few shareholders would rally behind him. Nobody wanted to be led by a Chinese person.
Yet, when Collier saw Li Tang again, anger flared through him intensely. He hadn't expected this brutal move after rejecting cooperation. But when he noticed Terrence calmly seated beside Li Tang, he suddenly felt suffocated.
"Collier, my old friend, we meet again!" Terrence warmly invited him to sit down, immediately soothing Collier's emotions. "We have no intention of forcing you out. We invested in your company because we value its future prospects and wish to cooperate with you."
Collier was momentarily stunned, mind blank. Freeport Copper & Gold? During their last meeting, Freeport had shown absolutely no interest in the project.
"What's your relationship with Cruiser Investment?" Collier asked hesitantly.
"We co-founded Cruiser Investment with Mr. Li here," Terrence answered lightly, fully in control. "We've submitted a takeover offer to your board, but knowing you likely wouldn't agree, we invited you here to discuss it personally."
"Why are you targeting our company?" Collier still couldn't comprehend their motivations.
Investment rarely needed detailed justification. Terrence offered two options plainly, "First, we could use other strategies to secure more shares from your shareholders. Even with your substantial voting rights, you won't stop our determination to control your company."
His tone left no room for doubt. In comparison to Freeport, Northern Dynasty was a mere chick before an eagle.
"Second, we collaborate. You'd remain the founder and manager, but we'd participate in company management and decision-making," Terrence calmly concluded, "Again, our intention isn't removing you, but your financing and exploration plans don't satisfy us."
"We have better ideas," Li Tang interjected calmly.
"Precisely," Terrence agreed, nodding.
Collier finally understood. Option one meant he packed his bags and left. Option two meant staying on as their puppet, a prospect deeply dissatisfying. He'd founded Northern Dynasty, gone public, acquired Teck Resources' Pebble Project, and was prepared for a great enterprise. It was his dream, and now these men intended to seize even his dreams!
"Let me think it over," he swallowed hard. Although he wielded considerable control over his company, resistance against Freeport seemed futile. If shareholders rallied behind Freeport, Collier would certainly lose. Even Climber Fund's manager, whom he had considered a friend, willingly betrayed him for profit, handing over a critical 20% stake—this betrayal deeply shocked him. Who else would betray him next?
If the entire board sided with Freeport, his solitary resistance would mean nothing. He finally raised his head, looking directly at Li Tang and Terrence.
"I don't understand, Mr. Terrence. What exactly is your relationship with this Chinese man?" Collier demanded.
"Business partners," Terrence replied simply.
"If you exclude this Chinese man, I'd gladly serve Freeport," Collier offered bluntly. His thinking was clear: ultimately, all junior exploration firms either sold their assets or were acquired by mining giants. But serving under a Chinese man was an impossible pill to swallow.
"That's an unreasonable demand we won't accept," Terrence calmly, yet firmly, refused. Freeport wasn't worried about Collier's resistance—only price negotiation remained undecided.
After prolonged thought, Collier questioned again, "Why insist on me staying and yet interfere with operations?"
"Because your exploration strategy is deeply flawed," Li Tang stated bluntly. "We identified technical gaps and weaknesses we want to address."
"Our technical team is first-class!" Collier argued heatedly, outraged at this insult to his core competency.
"Your approach is wrong. Trust me," Li Tang stopped short of elaboration.
"You're deliberately provoking us!" Collier accused indignantly.
"Let's collaborate, then see who's right," Li Tang calmly challenged.
"If you convince me technically today, I'll agree immediately," Collier scoffed.
"You'll understand soon enough," Li Tang replied cryptically, choosing not to engage in pointless debate.
Eventually, Collier reluctantly agreed to collaborate. Although unwilling to relinquish shares, he consented to modifying the financing arrangement. Initially, half the planned $30 million USD financing involved debt issuance and the other half equity, minimizing dilution. The new financing agreement shifted entirely toward equity—a $20 million directed share placement and a $10 million loan.
Thus, Cruiser Investment now controlled 73% of Northern Dynasty, though Collier remained CEO and chairman, maintaining his nominal position of leadership.
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