24th Sep 2021 06:58
Metal Tiger PLC - investor in natural resources - On Thursday, says that investee Sandfire Resources Ltd has signed an agreement with Trafigura and Mubadala Investment Co to acquire the Minas de Aguas Tenidas copper mining complex in Spain for AUD2.57 billion - around USD1.87 billion.
The mining complex comprises three underground mining operations feeding a 4.7 million tonnes per annum central processing facility with infrastructure producing 100,000 to 120,000 copper equivalent per annum.
Sandfire is to fund to acquisition through a mixture of debt, existing cash reserves and through the raising of equity. Conditions for the acquisition includes Spanish foreign direct investment and antitrust merger approval.
Metal Tiger holds 6.1 million shares in Sandfire, reflecting a 3.4% interest.
On Wednesday, notes that Sandfire has completed the maiden probable ore reserve for A4 deposit, located west of the Motheo copper mine in Botswana.
The reserves stands at 9.7 million tonnes graded at 1.2% copper and 18 grams per tonne of silver for 114,000 tonnes of contained copper metal and 5.7 million ounces of contained silver.
Results confirm the deposit as a high-grade source of additional ore feed to the Motheo mine.
Looking ahead, Sandfire will now start work on a definitive feasibility study for the 5.2 million tonnes per annum Motheo Expansion, which is expected to be completed in the third quarter of 2022.
Current stock price: 21.50 pence
Year-to-date change: down 7.5%
By Dayo Laniyan; [email protected]
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