Glencore PLC MAC + Glencore agree to acquire Cobar mine (2755H)
23 November 2022 - 6:44PM
UK Regulatory
TIDMGLEN
RNS Number : 2755H
Glencore PLC
23 November 2022
Glencore plc
Baar, Switzerland
23 November 2022
Metals Acquisition Corp (MAC) and Glencore agree to amend terms
to acquire CSA (Cobar) Mine in transaction valued at US$1.1
billion
Glencore and MAC have entered into a binding amendment
agreement, amending terms announced on 17 March 2022, for the sale
and purchase of Glencore's 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 (see Appendix
hereto).
MAC is a Special Purpose Acquisition Company (SPAC) listed on
the New York Stock Exchange. 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.
Patrice Merrin is a director of Glencore plc and is also a
director of MAC. Ms Merrin holds a <1% voting interest in MAC's
shares. MAC is not a related party of Glencore within the meaning
of the UK Listing Rules.
For further information, please contact:
Investors
Martin Fewings t: +41 41 709 28 80 m: +41 79 737 56 42 martin.fewings@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
Francis De Rosa m: +61 417 074 751 francis.de.rosa@glencore.com
www.glencore.com / www.glencore.com.au
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
About Glencore
Glencore is one of the world's largest global diversified
natural resource companies and a major producer and marketer of
more than 60 responsibly-sourced commodities that advance everyday
life. The Group's operations comprise around 150 mining and
metallurgical sites and oil production assets.
With a strong footprint in over 35 countries in both established
and emerging regions for natural resources, Glencore's industrial
activities are supported by a global network of more than 30
marketing offices. Glencore's customers are industrial consumers,
such as those in the automotive, steel, power generation, battery
manufacturing and oil sectors. We also provide financing, logistics
and other services to producers and consumers of commodities.
Glencore's companies employ around 135,000 people, including
contractors.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. We are an active participant in the Extractive
Industries Transparency Initiative. Our ambition is to be a net
zero total emissions company by 2050.
Glencore recognises our responsibility to contribute to the
global effort to achieve the goals of the Paris Agreement. Our
ambition is to be a net zero total emissions company by 2050. In
August 2021 we increased our medium-term emission reduction target
to a 50% reduction by 2035 and introduced a new short-term target
of a 15% reduction by 2026.
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Disclaimer
The companies in which Glencore plc directly and indirectly has
an interest are separate and distinct legal entities. In this
document, "Glencore", "Glencore group" and "Group" are used for
convenience only where references are made to Glencore plc and its
subsidiaries in general. These collective expressions are used for
ease of reference only and do not imply any other relationship
between the companies. Likewise, the words "we", "us" and "our" are
also used to refer collectively to members of the Group or to those
who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or
companies.
Appendix
Consideration as originally agreed (USD1.1 billion plus 1.5%
copper NSR) in March 2022 but payment terms amended to consist
of:
-- US$775m cash (with the ability to scale up to US$875m cash depending on PIPE demand);
-- Up to US$100m of common equity;
-- US$75m deferred to be paid out of half the proceeds of any
future equity raise, with an equity back-stop provision for
Glencore's benefit;
-- US$75m contingent payment payable when copper averages >
US$4.25/lb for 18 continuous months over the Life of Mine
("LOM");
-- US$75m contingent payment payable when copper averages >
US$4.50/lb for 24 continuous months over the LOM; and
-- 1.5% copper NSR.
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END
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