Metals Acquisition Limited (NYSE: MTAL; ASX: MAC)
Metals Acquisition Limited ARBN 671 963 198 (NYSE: MTAL; ASX:
MAC) (“MAC” or the “Company”) is pleased to announce
that it has signed a subscription agreement representing a
strategic investment with Polymetals Resources Limited
(“POL”).
Highlights of the investment include:
- MAC to invest an initial A$2.5 million in total at a price of
A$0.35/share for an initial 4.31% interest in POL.
- MAC to invest an additional A$2.5 million in total at a price
of A$0.35/share subject to satisfaction of certain conditions
precedent including:
- POL securing sufficient funding to restart the Endeavour mine
and processing plant;
- POL and MAC entering into a tolling agreement to treat zinc ore
delivered by MAC to POL (with a treatment charge of costs +
35%);
- POL and MAC entering into a Water Offtake agreement whereby POL
will allow MAC to draw 150ML of water annually from the Endeavor
mine pipeline for a term of 4.5 years. MAC will have an option to
extend beyond the initial 4.5 years on terms to be agreed in good
faith between the parties; and
- MAC securing any necessary third-party consents (including from
its secured lenders and Glencore Plc) to undertake the transactions
contemplated.
- MAC will have the right to appoint one director to the POL
board whilst MAC holds >7% of the issued shares in POL.
POL holds the rights to the Endeavor silver zinc lead Mine
approximately 40km to the north of the CSA Copper Mine. Endeavor
produced approximately 92M oz Ag, 2.6Mt Zn and 1.6Mt Pb over a
38-year mine life and is one of the more prolific producers in the
Cobar Basin.
Strategically having the option to treat potential high grade
zinc mineralisation near surface from the CSA Copper Mine at
Endeavor can potentially create significant value for our
shareholders. Additionally with securing 150ML of water offtake for
the next 4.5 years (with an option to extend) also increases the
potential throughput we can achieve at the CSA Copper Mine for a
low cost.
The POL management team has over 30 years of experience
exploring, developing and operating mines in the Cobar Basin and
have acquired the mine with a view to restarting operations. The
asset comes with significant infrastructure including an
underground mine with a decline and hoisting system, 1.2MTPA
processing plant, grid power, water, railway, and workshop
facilities.
MAC CEO, Mick McMullen commented “We believe that this
kind of transaction is an example of how cooperation in the Cobar
Basin has the potential to extract the best value in the Basin. As
recently announced, the CSA Copper Mine appears to host high grade
zinc mineralisation near surface and adjacent to existing
development. Subject to exploration success, modifying factors and
some permitting, we think that having the option to treat this
material at Endeavor can potentially create significant value for
our shareholders. This is a logical way of securing a processing
option for any zinc ore we might mine without distracting our
operations from the core business of mining and recovering
copper.
Having secured 150ML of water offtake for the next 4.5 years
(with an option to extend) from the pipeline that runs right past
our site also increases the potential throughput we can achieve at
the CSA Copper Mine for a low cost.
By investing in POL, we are creating a partnership to achieve
better outcomes for both companies. We have known the POL
management team for over 20 years, they bring a wealth of
experience to the area and have the ability to operate mines very
efficiently and we are very supportive of their efforts to reopen
the Endeavor mine as well as exploring their immediate mine
environment which like the CSA Copper Mine is very underexplored
for all base metals including copper.
We continue to evaluate opportunities to add value to our
business both organically and inorganically.”
MAC’s rights to extend the initial 4.5 year term of the Water
Offtake Agreement is subject to Foreign Investment Review Board
(FIRB) approval (to the extent required). MAC’s subscription
for POL shares does not require FIRB approval.
This announcement has been approved for release by the Board of
Directors.
About Metals Acquisition Limited
Metals Acquisition Limited (NYSE: MTAL; ASX:MAC) is a company
focused on operating and acquiring metals and mining businesses in
high quality, stable jurisdictions that are critical in the
electrification and decarbonization of the global economy.
Forward Looking Statements
This release has been prepared by Metals Acquisition Limited
(“Company” or “MAC”) and includes “forward-looking statements.” The
forward-looking information is based on the Company’s expectations,
estimates, projections and opinions of management made in light of
its experience and its perception of trends, current conditions and
expected developments, as well as other factors that management of
the Company believes to be relevant and reasonable in the
circumstances at the date that such statements are made, but which
may prove to be incorrect. Assumptions have been made by the
Company regarding, among other things: the price of copper,
continuing commercial production at the CSA Copper Mine without any
major disruption, the receipt of required governmental approvals,
the accuracy of capital and operating cost estimates, the ability
of the Company to operate in a safe, efficient and effective manner
and the ability of the Company to obtain financing as and when
required and on reasonable terms. Readers are cautioned that the
foregoing list is not exhaustive of all factors and assumptions
which may have been used by the Company. Although management
believes that the assumptions made by the Company and the
expectations represented by such information are reasonable, there
can be no assurance that the forward-looking information will prove
to be accurate.
MAC’s actual results may differ from expectations, estimates,
and projections and, consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar
expressions (or the negative versions of such words or expressions)
are intended to identify such forward- looking statements. These
forward-looking statements include, without limitation, MAC’s
expectations with respect to future performance of the CSA Copper
Mine. These forward-looking statements involve significant risks
and uncertainties that could cause the actual results to differ
materially from those discussed in the forward-looking statements.
Most of these factors are outside MAC’s control and are difficult
to predict. Factors that may cause such differences include, but
are not limited to: the supply and demand for copper; the future
price of copper; the timing and amount of estimated future
production, costs of production, capital expenditures and
requirements for additional capital; cash flow provided by
operating activities; unanticipated reclamation expenses; claims
and limitations on insurance coverage; the uncertainty in Mineral
Resource estimates; the uncertainty in geological, metallurgical
and geotechnical studies and opinions; infrastructure risks; and
other risks and uncertainties indicated from time to time in MAC’s
other filings with the SEC and the ASX. MAC cautions that the
foregoing list of factors is not exclusive. MAC cautions readers
not to place undue reliance upon any forward-looking statements,
which speak only as of the date made. MAC does not undertake or
accept any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements to reflect
any change in its expectations or any change in events, conditions,
or circumstances on which any such statement is based.
More information on potential factors that could affect MAC’s or
CSA Copper Mine’s financial results is included from time to time
in MAC’s public reports filed with the SEC and the ASX. If any of
these risks materialize or MAC’s assumptions prove incorrect,
actual results could differ materially from the results implied by
these forward-looking statements. There may be additional risks
that MAC does not presently know, or that MAC currently believes
are immaterial, that could also cause actual results to differ from
those contained in the forward-looking statements. In addition,
forward-looking statements reflect MAC’s expectations, plans or
forecasts of future events and views as of the date of this
communication. MAC anticipates that subsequent events and
developments will cause its assessments to change. However, while
MAC may elect to update these forward-looking statements at some
point in the future, MAC specifically disclaims any obligation to
do so, except as required by law. These forward-looking statements
should not be relied upon as representing MAC’s assessment as of
any date subsequent to the date of this communication. Accordingly,
undue reliance should not be placed upon the forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20240527386440/en/
Mick McMullen Chief Executive Officer Metals Acquisition
Limited. investors@metalsacqcorp.com
Dan Vujcic Chief Development Officer Metals Acquisition
Limited
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