Panama vows to talk to First Quantum in coming months on shuttered mine
Panama’s new president has said that the mine may need to be temporarily reopened in order to responsibly prepare for a permanent closure.
Blank-check firm ACG Acquisition is buying a Turkish mine, which plans to start copper and zinc production in 2026, in a $290 million deal with a subsidiary of Turkish conglomerate Calik Holding, ACG said on Thursday.
The deal, a bet on growing demand for copper from the energy transition, includes funding for the $145 million expansion of the mine to reach annual production of up to 25,000 metric tons of copper equivalent.
The Gediktepe mine “marks the beginning of ACG’s global copper consolidation strategy. The company is actively engaged in discussions with several further targets,” the blank check – or special purpose acquisition company (SPAC) – said.
SPACs are shell companies that raise money via an initial public offering (IPO) and later merge with a private company, taking it public.
The Calik subsidiary will get a 30% stake in ACG and $100 million in cash.
In September, ACG’s $1 billion deal to buy a nickel mine and a copper mine in Brazil was terminated when backers of the transaction, including a leading global miner and top automakers, tried to revise it.
This time, ACG said it had received commitments for 100% of the required funding for the deal and the mine expansion. The mine produced 34,000 troy ounces of gold and 361,000 ounces of silver in 2023.
The source of the funds includes $135 million in debt and equity from an unidentified mining private equity fund, debt and equity of up to $25 million from metals trader Traxys, and equity of $60 million from ACG’s co-sponsors and an unidentified European family office.
ACG expects the acquisition to complete before Aug. 31.
(By Polina Devitt; Editing by Mark Potter)
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