News: ORI UPDATE 1-Australia's Orica to buy US-based Cyanco for $640 mln

(Adds details on acquisition, CEO quote)

Feb 21 (Reuters) - Australia's mining chemicals maker Orica (ORI) said on Wednesday it will acquire the entire stake of U.S.-based sodium cyanide manufacturer Cyanco Intermediate 4 Corp for $640 million.

Orica will fund the acquisition via an underwritten institutional placement worth A$400 million ($261.88 million), along with its existing cash and debt facilities, it said.

The company said it will also launch a share purchase plan of A$65 million for financing the Cyanco deal.

Cyanco supplies sodium cyanide, a specialised chemical required for gold processing, primarily to gold mining industries in the U.S., Canada, Mexico, Latin America, and Africa.

"The acquisition will more than double Orica's existing sodium cyanide production capacity and provide us with the ability to cater to the highly attractive US and Canadian gold mining industries," Orica's CEO said.

The acquisition is expected to be completed by the end of fiscal 2024, the Australian firm said.

($1 = 1.5274 Australian dollars)