Glencore amends CSA sales agreement
PERTH (miningweekly.com) – Diversified miner Glencore has amended the terms of sales and purchase agreement with NYSE-listed Metals Acquisition Corp (MAC) over the sale of the CSA copper mine, in New South Wales.
The two companies in March this year struck an agreement under which Glencore would receive $1.05-billion in cash, $50-million equity stake in MAC and a 1.5% net smelter return life-of-mine (LoM) royalty on completion of the transaction.
Under the amended agreement, Glencore will now receive consideration of $1.1-billion as originally agreed with amended payment terms and a 1.5% net smelter return LoM royalty upon completion of the transaction.
The first $775-million will be paid in cash, with the ability to scale-up this payment to $875-million, with up to $100-million to be paid in common equity. A further $75-million deferred payment will paid out of half of the proceeds of any future equity raise, and a $75-million contingent payment will be payable when copper averages more than $4.25/lb for 18 continuous months over the LoM.
A $75-million contingent payment will be payable when copper averages $4.50/lb for 24 continuous months over the LoM.
“We have worked closely with Glencore to arrive at a transaction structure that delivers value to both parties, and an increased certainty of completion,” said MAC CEO Mick McMullen.
The CSA mine employs 540 staff and produces around 50 000 t of copper each year, which is mined and processed on site, and then railed 700 km to the Port of Newcastle for export. In 2021, the mine produced 40 530 t of copper in concentrate.
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