PERTH (miningweekly.com) – Metals miner Independence Group on Monday announced plans to divest of its Jaguar copper/zinc mine, in Western Australia, for A$73.2-million to CopperChem.
The purchase consideration would consist of A$25-million in cash on the completion of the transaction and a further A$48.2-million in deferred cash payments, which would be paid in three equal installments payable annually on the anniversary of the sale.
“Independence’s strategic focus is on high-quality assets of scale and longevity with an evolving focus on assets that are aligned to the emerging supercycle for energy storage minerals,” said MD and CEO Peter Bradford.
“Although Independence recognises the opportunity for future discovery in the zinc/copper/silver/gold camp, continuing ownership is not consistent with our strategy, nor core to the business.”
Bradford said that following a review of the value enhancement opportunities at Jaguar, Independence decided that the asset did not fit the company’s strategic metrics, and as a result, the decision was made to divest the asset through a sale.
“This enables Independence to concentrate on delivery from, and growth of, our key assets Nova and Tropicana, and the execution of our exploration strategy.”
Independence acquired Jaguar in 2011, which at that point comprised the Jaguar and Bentley underground mines. The Jaguar mine was placed under care and maintenance in 2012, and since then all ore has been sourced from the Bentley mine and processed through the Jaguar concentrator to produce a high-grade zinc concentrate, as well as a copper concentrate.
A total of 444 700 t of ore was mined from the Bentley underground mine in 2017, to produce 32 638 t of zinc, 4 565 t of copper, 1.37-million ounces of silver, and 2 532 oz of gold in 88 444 t of concentrate.
“The Jaguar operation has played a significant role in the growth of Independence to date, and on behalf of the company, I would like to recognise the achievements of the team, including their commitment to safe and consistent production and outstanding local community engagement,” Bradford said.
Independence would assist CopperChem throughout the ownership transition process to ensure that safety was maintained with minimal disruption to production, as well as to provide support to employees and contractors.