Aeris Resources could acquire Glencore’s CSA copper mine in Cobar, New South Wales, for $US625 million ($878 million) in cash and shares.
The two companies have reached late stage negotiations around Aeris’ offer of $US575 million in cash and around $US50 million of shares, plus a royalty payable to Glencore.
Aeris said it had not finalised funding for the potential offer. However, the copper-focused company appeared to have shareholder support with its late stage discussions with major stockholder Special Portfolio Opportunity V.
“Whilst Aeris provides this information to ensure that Aeris shareholders are informed as to the current status of discussions around the offer, it is important to note that there is no guarantee that the potential acquisition will proceed,” Aeris said in an ASX statement.
“Additionally, in the event that a formal agreement for the potential acquisition is entered into, it will likely be subject to a number of conditions including required shareholder approval.”
Aeris said it would update the market if and when the two companies reached an agreement in relation to an acquisition.
The CSA mine has an “erratic production history” and was acquired by Ashanti Goldfields before it was closed in 1997–1998. The mine was then reopened by Glencore in 1999 and is now operated by Cobar Management. It produced 53,400 tonnes of copper concentrates in 2017 with a silver co-product.
Meanwhile, the CSA mine is in the middle of a hiring process for personnel across the operation to join the 300-plus workforce. The majority of the site’s workers are based in the local township of Cobar.