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London-listed miner Glencore has agreed to sell its Ernest Henry Mining copper-gold mine in Queensland to Australia-based Evolution Mining for A$1 billion ($729.60 million), the companies said on Wednesday.
The acquisition will double Evolution Mining’s annual copper production from its earlier forecast to between 34,000 to 38,000 tonnes, driving all-in sustaining cost (ASIC) lower to about A$90 to A$100 per ounce.
The deal, expected to close in January 2022, also includes an offtake agreement sealing the supply of 100% of the copper produced at the mine to Glencore, the companies said in a separate announcement.
Evolution will make an upfront payment of A$800 million to the diversified miner and pay the remaining amount after a year of deal completion.
The company plans to fund the deal through available cash and a new share issuance of $200 million.
The deal will see Evolution fully own and operate the Ernest Henry mine, in which it held a stake since November 2016 via a joint venture structure with Glencore.
(With files from Reuters)
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