24th Aug 2015 06:09
LONDON (Alliance News) - Anglo American PLC on Monday said it has reached a deal to sell its interest in two copper mines to a consortium for up to USD500 million.
The subsidiary, Anglo American Norte SA, holds Mantoverde and Mantos Blancos copper mines located in northern Chile, and the FTSE 100-listed miner has agreed to sell them to an investor consortium led by Audley Capital Advisors LLP, with Orion Mine Finance as the principal co-investor, for an up-front cash consideration of USD300 million, with potential upside to up to USD500 million, it said.
The additional USD200 million is contingent on the London Metal Exchange copper price performance, and any decision to pursue the sulphide life extension of the Mantoverde mine.
"The sale of our Norte copper assets to the Audley consortium represents a good outcome for Anglo American, both in terms of the up-front value achieved, the potential upside geared to the copper price and the continued delivery of our asset disposal programme," said Chief Executive Mark Cufitani.
The transaction is not subject to any regulatory conditions and is expected to close before the end of the third quarter of 2015, Anglo American said.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Anglo American