19th Jul 2024 12:40
ACG Acquisition Co Ltd - special purpose acquisition company focused on new economy metals mining - Agrees to reverse takeover of the Gediktepe polymetallic mine in the Balikesir province of western Turkey from Lidya Madencilik Sanayi ve Ticaret Anonim Sirketi, a subsidiary of Istanbul-based conglomerate Calik Holding. The Gediktepe mine currently produces gold and silver but will start to production of copper and zinc in 2026. ACG says the newly listed company, to be called ACG Metals, will be a leading London-listed miner of copper, which it notes will play a central role in the long-term energy transition from fossil fuels.
The USD290 million deal is comprised of USD100 million in cash, plus USD37 million in ACG shares, 30% of the total, issued to Lidya. In addition, USD145 million will be spent on a sulphide expansion project at the mine to allow for the copper and zinc production. ACG says all of the transaction funding has been agreed in principle. Gediktepe is intended to be the first asset in a copper consolidation strategy that it wants to pursue as ACG Metals.
Current stock price: USD15.60 in London on Friday afternoon
12-month change: up 46%
By Tom Waite, Alliance News editor
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