20th Mar 2019 08:37
LONDON (Alliance News) - Australian miner Aeris Resources Ltd confirmed on Wednesday it is in talks to buy a Glencore PLC mine for almost USD600 million.
Aeris will pay USD575 million to buy the CSA copper mine in Cobar, central western New South Wales state in Australia.
It will pay USD525 million in cash, Aeris said, with the rest in shares, while there will also be a royalty payable to London- and Johannesburg-listed Glencore.
Sydney-listed Aeris said "late stage" negotiations are ongoing but have not been finalised. It has also not yet secured funding.
This funding would include between USD250 million and USD300 million in debt and a USD185 million to USD240 million equity raise.
The USD575 million size of the deal compares to Aeris's current market capitalisation in Sydney of approximately AUD77.5 million, or USD54.9 million.
Glencore shares were 1.9% lower in London on Wednesday morning at 313.88 pence each, down 0.8% in Johannesburg at ZAR60.17.
Related Shares:
Glencore