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Glencore PLC on Thursday said it will be selling its Cornish, Scottish & Australia copper mine in New South Wales, Australia to Metals Acquisition Corp.
The Baar, Switzerland-based commodity trading and mining company said it will net $1.05 billion in cash, a $50 million equity stake in MAC as well as a 1.5% net smelter return life of mine royalty for the sale.
New York-listed MAC is an acquisition vehicle focused on green-economy metals and mining businesses.
MAC will assume ownership and full operational control of the mine and will enter into an offtake agreement with Glencore for 100% of the copper concentrate produced at CSA Mine.
The acquisition is expected to go through in 2022, but still has to gain MAC shareholder and regulatory approval.
CSA mine produces about 50,000 tonnes of copper each year.
Glencore was in talks to sell the mine to Aurelia Metals in 2019, which came after junior Australian miner Aeris Resources failed to get backing from investors for a $575 million deal.
Glencore shares were down 0.5% to 470.75 pence each in London on Thursday. The stock was down 0.5% to R 92.71 each in Johannesburg.
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