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Glencore to sell Australian copper mine to SPAC for $1.1 billion
Global Banking and Finance Review
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(Reuters) – Glencore said on Wednesday that blank-check firm Metal Acquisition Corp (MAC) agreed to an amended agreement to buy the global miner’s Cobar copper mine in Australia in a deal valued at $1.1 billion.
(Reuters) – Glencore said on Wednesday that blank-check firm Metal Acquisition Corp (MAC) agreed to an amended agreement to buy the global miner’s Cobar copper mine in Australia in a deal valued at $1.1 billion.
Glencore said the terms include Glencore receiving $1.1 billion, as originally agreed in a March deal, but with amended payment terms of $775 million in cash and up to $100 million common equity, besides other payments.
Glencore also has the right to appoint one director to MAC’s board for each 10% interest it holds in the U.S.-listed special purpose acquisition company (SPAC) from time to time, MAC said in a statement overnight.
SPACs are shell companies that raise money in an initial public offering and put it in a trust for the purpose of merging with a private company and taking it public.
MAC said it would need to raise at least $125 million to fund the cash component of the deal, which is expected to close in the first quarter of 2023.
(Reporting by Yadarisa Shabong; Editing by Savio D’Souza)
A SPAC, or Special Purpose Acquisition Company, is a shell company that raises money through an initial public offering to merge with a private company and take it public.
Equity refers to the ownership interest in a company, represented by shares of stock. It signifies the value of ownership after all liabilities have been deducted.
A copper mine is a site where copper ore is extracted from the earth. Mining operations can vary in size and method, including open-pit and underground mining.
Payment terms are the conditions under which a seller will complete a sale. This includes the timing of payments, methods of payment, and any penalties for late payment.
A director appointment is the process of selecting an individual to serve on the board of directors of a company, responsible for overseeing management and making strategic decisions.
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