Copper Mountain agrees to sell Eva Copper project and Australian Exploration Tenements

Under the terms of the transaction, Copper Mountain will receive the following consideration:

• US$170 million in cash payable on closing of the transaction.

• Up to US$30 million in cash, based on a contingent payment arrangement where Harmony will pay Copper Mountain 10% of the incremental revenue generated from the Eva Copper project and the Australian exploration land package above the revenue assuming a US$3.80/lb. copper price.

• Up to US$30 million in cash, based on a contingent payment arrangement where Harmony will pay Copper Mountain US$0.03 per lb. of contained copper for any SAMREC copper resource discovered and declared on a new deposit within the Eva Copper project and the Australian exploration land package after the closing of the transaction.

Gil Clausen, Copper Mountain’s President and CEO, stated:

“We are pleased with this transaction as it demonstrates the value the company has developed in the Eva Copper project since our acquisition of Altona Mining Limited in 2018. It also recognises the exploration upside that exists on the surrounding prospective land package.”

Letitia Wong, Copper Mountain’s CFO, added:

“This transaction strengthens our balance sheet and allows the company to evaluate options with respect to our long-term capital structure. Further, as our recently announced life of mine plan demonstrates, the Copper Mountain Mine is expected to generate healthy free cash flow starting in 2023 and we expect mine operations and the 65 000 t per day expansion to be self-funded going forward.

Read the article online at: https://www.globalminingreview.com/mining/11102022/copper-mountain-agrees-to-sell-eva-copper-project-and-australian-exploration-tenements/