JSE-listed gold miner Harmony Gold reports that its acquisition of the Eva Copper project from Copper Mountain Mining Corporation, has been finalised, with the R3-billion ($170-million) payment due to be made before the end of the week using cash and available revolving credit facilities.
The acquisition of the Queensland, Australia-based 2 295 km2 worth of tenements also comprises a R1-billion ($60-million) contingent payment.
The acquisition of Eva Copper will add 1.72-billion pounds of copper and 260 000 oz of gold to Harmony’s mineral reserves and extend the company’s diversification into copper – a future-facing metal critical to the energy transition.
The Australian Foreign Investment Review Board notified Harmony on December 13 that it has no objections to the acquisition, while Copper Mountain Mining Corporation received bondholder approval under its senior secured bonds on November 28. These were the only conditions precedent required for completion of this acquisition.
Harmony’s Brisbane-based project team is currently undertaking a detailed review of the existing feasibility study, while contractors have been mobilised in support of this work.
As part of the project review and enhancement process, which is expected to take up to 12 months, Harmony will determine the most effective way of executing the project and financing the capital requirements to bring the mine into production.
Harmony CEO Peter Steenkamp says the conclusion of this acquisition marks the beginning of the miner’s strategic diversification into copper. “Eva Copper will further de-risk the business as it provides entry into a tier 1 jurisdiction, counter-cyclical diversification of revenue and meets Harmony’s investment criteria.”
In addition, he says Eva Copper is a fully-permitted project and meets all environmental, social and governance requirements, demonstrating responsible stewardship.
Harmony reports that it remains comfortably within its debt covenants following the conclusion of the acquisition.