Independence Group (IGO) plans to offload the multi-commodity Jaguar Operation near Leonora in Western Australia to CopperChem for $73.2 million to increase a focus on energy storage minerals.
The divestment will involve a $25 million cash payment on completion of the transaction and $48.2 million in deferred cash payments over three years. IGO expects to complete the deal on May 31.
IGO managing director and chief executive Peter Bradford said the company’s strategic focus was on high-quality assets of scale and longevity, with an evolving focus on assets that are aligned to the emerging super-cycle for energy storage minerals.
“Although IGO recognises the opportunity for future discovery in this zinc-copper-silver-gold VMS camp, continuing ownership is not consistent with our strategy nor core to the business,” Bradford said.
“Following a review of the value enhancement opportunities at Jaguar, we have decided that the asset does not fit our strategic metrics and accordingly we have made the decision to divest the asset through the sale to CopperChem.
“This enables IGO to concentrate on delivery from, and growth of, our key assets, Nova and Tropicana, and the execution of our exploration strategy.”
IGO acquired Jaguar, which comprises the Jaguar and Bentley underground mines, from Jabiru Metals in 2011.
The Jaguar mine was placed on care and maintenance in 2012, with all ore following that decision sourced from Bentley and processed through the Jaguar concentrator to produce high-grade zinc concentrate, as well as a copper concentrate rich in silver and gold credits.
CopperChem, a subsidiary of Washington H. Soul Pattinson, also acquired the Stockman copper-zinc mine from IGO for $47.2 million in June last year.