Make Kitco Your Homepage

Glencore, MAC agree to amend terms to acquire CSA mine in US$1.1 billion transaction

Kitco News

Editors Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of todays must-read news and expert opinions. Sign up here!

(Kitco News) - Glencore announced today it has entered into a binding agreement with Metals Acquisition Corp (MAC), amending terms announced on 17 March 2022, for the sale and purchase of Glencore’s CSA (Cobar) copper mine in New South Wales, Australia.

Pursuant to the binding amendment agreement Glencore will receive consideration of US$1.1 billion as originally agreed with amended payment terms and a 1.5% net smelter return life of mine royalty upon completion of the transaction.

The transaction is expected to be completed in the first quarter of 2023, 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.

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.

MAC is a Special Purpose Acquisition Company (SPAC) listed on the New York Stock Exchange.

Cerrado Gold's net loss widens in third quarter on lower gold price and higher costs

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.