17th Nov 2021 08:13
(Alliance News) - Glencore announced on Wednesday that it had entered into an agreement with Evolution Mining Ltd to sell subsidiary Ernest Henry Mining Pty Ltd in a deal valued at AUD1 billion, around USD729.0 million.
Ernest Henry Mining, in which Glencore hold 100% interest, owns the Ernest Henry Mining copper-gold mine in Queensland, Australia.
In terms of the proposed acquisition, Glencore will receive AUD1 billion, comprising AUD800 million on the closing of the transaction and a further AUD200 million payable 12 months after the transaction closes.
The transaction is expected to close in early January.
New South Wales, Australia-based Evolution will assume full ownership and operational control of the copper-gold mine and will enter into a copper concentrate offtake agreement and separate ore tolling agreement with Glencore.
Evolution has worked in partnership with Glencore for the past five years at the Ernest Henry Mining copper-gold mine, and has operations in Australia and Canada.
For its part, Glencore will offtake 100% of the copper concentrate produced at Ernest Henry Mining.
Glencore shares were down marginally in early morning trade in London to 363.60 pence each, and were up 0.8% to ZAR75.77 each in Johannesburg.
By Artwell Dlamini; [email protected]
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