Glencore, Metals Acquisition Amend Details of Sale of CSA Mine in Australia

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.

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(END) Dow Jones Newswires

November 23, 2022 02:51 ET (07:51 GMT)

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