-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 kilotonne (kt)-38 kt, driving all-in sustaining cost (ASIC) lower to about A$90 – 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.
($1 = 1.3706 Australian dollars)