Glencore to sell Ernest Henry asset to Evolution for A$1 billion
Thursday, November 18, 2021 - 13:48:09
Mining.com
|
|
The acquisition will double Evolution Mining’s annual copper production from its earlier forecast to between 34,000 to 38,000 tonnes, driving all-in sustaining cost (ASIC) lower to about A$90 to A$100 per ounce.
The deal, expected to close in January 2022, also includes an offtake agreement sealing the supply of 100% of the copper produced at the mine to Glencore, the companies said in a separate announcement.
Evolution will make an upfront payment of A$800 million to the diversified miner and pay the remaining amount after a year of deal completion.
The company plans to fund the deal through available cash and a new share issuance of $200 million.
The deal will see Evolution fully own and operate the Ernest Henry mine, in which it held a stake since November 2016 via a joint venture structure with Glencore.
http://www.miningnewspro.com/en/News/617095/Glencore to sell Ernest Henry asset to Evolution for A$1 billion
|