South32 to sell base metal royalties to Anglo Pacific Group
Published by Jessica Casey,
Editor
Global Mining Review,
South32 Ltd has entered into a binding agreement for the sale of a package of four non-core base metals royalties (base metals royalties) to London Stock Exchange listed Anglo Pacific Group Plc. The total sale price includes US$185 million of fixed consideration plus contingent payments of up to US$15 million. The base metals royalties are across third party interests in a mix of producing assets and advanced development stage projects, largely in copper and nickel in Australia, USA and Chile.
There are no conditions precedent for the transaction, with completion expected within five business days.
The fixed consideration includes US$103 million in cash payments, and US$82 million of Anglo Pacific shares, which will be issued to South32 on completion. Following completion, South32 will hold a ~16.9% interest in Anglo Pacific.
The transaction follows the company’s successful divestment of four precious metal royalties to Elemental Royalties Corp. in 2021 for a US$40 million cash payment and US$15 million in Elemental shares.
South32 CEO, Graham Kerr, said: “Today’s sale of another non-core royalty package is a further step forward in unlocking latent value from our portfolio. The proposed transaction will realise an immediate cash payment, while also retaining long-term exposure to these royalties through our shareholding in Anglo Pacific. Following the sale, we still retain an exciting package of 36 royalties at different stages of maturity, weighted towards base metals.”
The package of 36 royalties retained by South32 include NSR royalties over Ecuacorriente S.A.’s Mirador mine, Explorcobres S.A.’s San Carlos/Panantza project, and Solaris Resources Inc.’s Warintza project, which are located in Ecuador.
Read the article online at: https://www.globalminingreview.com/finance-business/14072022/south32-to-sell-base-metal-royalties-to-anglo-pacific-group/
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