Metals Acquisition to acquire CSA mine from Glencore for more than $1 billion
(Kitco News) - Glencore said today it has entered into a binding agreement with Metals Acquisition Corp (MAC) pursuant to which MAC will acquire Glencore''s CSA copper-silver mine in New South Wales, Australia.
Glencore added it will receive US$1.05 billion in cash, US$50 million equity stake in MAC and a 1.5% net smelter return life of mine royalty upon completion of the transaction.
According to the company''s statement, MAC will assume ownership and full operational control of the mine and will enter into an offtake agreement with Glencore for 100% of the copper concentrate produced at CSA mine.
"The sale of CSA Mine is consistent with delivering our strategy of simplifying and aligning our global portfolio of over 150 operating sites to focus on lower-cost, long-life assets," the company said in a statement.
MAC is a Special Purpose Acquisition Company (SPAC) listed on the New York Stock Exchange. The transaction is expected to be completed in 2022, subject to the approval of MAC''s shareholders and other customary closing conditions, including regulatory approvals.
CSA is a high-grade, long-life, underground copper-silver mine located approximately 12km west-northwest of the town of Cobar in New South Wales, Australia.
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Since 2011, CSA has produced approximately 512kt of copper and 6Moz of silver. MAC is currently targeting a mine life of at least 15 years based on existing drill tested zones, with significant further upside from near-mine and regional targets.
Glencore is one of the world''s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities. The company's operations comprise around 150 mining and metallurgical sites and oil production assets.
In Australia, Glencore produces coal, copper, cobalt, nickel, zinc, lead, silver and gold from 25 mining operations. The company also operates metals processing assets in Queensland, New South Wales, Western Australia and the Northern Territory, including metals smelters, concentrators and refineries.