Glencore, Metals Acquisition Amend Details of Sale of CSA Mine in Australia
23 November 2022 - 7:06PM
Dow Jones News
By Joe Hoppe
Glencore PLC said Wednesday that it has agreed with Metals
Acquisition Corp. to amend a deal to sell its CSA copper mine in
Australia, receiving the $1.1 billion consideration as originally
agreed but with changed payment terms.
The FTSE 100-listed commodity mining and trading company had
agreed to sell the mine to Metals, a special purpose acquisition
company, in March in return for $1.05 billion in cash and $50
million in equity, plus a 1.5% copper net smelter royalty that will
be paid to Glencore after completing the sale of the mine.
Now, Glencore expects to receive $775 million in cash, with the
ability to scale to up to $875 million, up to $100 million in
common equity and three payments of $75 million each. These latter
payments will be deferred with the first to be paid out of half of
the proceeds of any future equity raise, with an equity back-stop
provision. The other two contingent payments are payable based on
copper prices over the life of mine.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
November 23, 2022 02:51 ET (07:51 GMT)
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