Glencore closes sale of Cobar Mine
Glencore and Metals Acquisition Corp (MAC) (NYSE: MTAL) have today closed the sale and purchase of Glencore’s 100% interest in Cobar Management Pty Ltd (CMPL), the owner of the Cobar copper mine in New South Wales, Australia.
Glencore has received USD775 million in cash and USD100 million in shares (with the effect that as of today’s date Glencore will hold 20.6% of the shares in MAC) on closing. The transaction also includes the following:
- USD75m deferred payment to be paid within 12 months;
- USD150m contingent payment contingent upon future copper prices;
- 1.5% life of mine Net Smelter Return royalty.
MAC will assume ownership and full operational control of the mine and Glencore will offtake 100% of the copper concentrate produced at CMPL.
The sale of CSA Mine is consistent with delivering our strategy of simplifying and aligning our global portfolio to focus on lower-cost, long-life assets.
Glencore will continue to be among Australia’s leading producers and exporters of the metals that underpin the global transition to a low-carbon future.
