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Glencore's $US1bn CSA sale to Metals

Metals Acquisition Corp finalises deal to buy Glencore’s CSA copper mine in New South Wales for $US1.1bn.
The sale was announced in New York overnight and comes after ASX-listed IGO abandoned plans to buy the copper mine after carrying out due diligence.
Glencore will receive $US1.05bn cash and a $US50m equity stake in Metals Acquisition Corp and a 1.5 per cent net smelter return life-of-mine royalty upon completion of the transaction.
Metals Acquisition Corp will also enter into an offtake agreement with Glencore for all of the copper concentrate produced at the CSA mine.
The sale to Metals Acquisition Corp was tipped to happen by DataRoom on March 1 after the column first revealed last year CSA was for sale and that Metals Acquisition Corp and IGO were both bidders.
Glencore says the sale is consistent with delivering its strategy of simplifying and aligning its global portfolio of over 150 operating sites to focus on lower-cost, long-life assets.
Metals Acquisition Corp is a special purpose acquisition company (SPAC) listed on the New York stock exchange and backed by high-profile Australian mining identities, including former Fortescue Metals boss Nev Power and the former executive chairman of Northern Star Bill Beament.
The transaction is expected to be completed this year, subject to approval by shareholders of Metals Acquisition Corp and other regulatory approvals.
Working for Metals Acquisition Corp was investment bank Citi, while Glencore tapped UBS and Bank of America for the sale.
Metals Acquisition Corp is chaired by Patrice Merrin, who is also a Glencore director, and did not participate in the consideration of the sale, Glencore says.
Glencore describes CSA as an established, high-grade producing copper mine that is expected to produce more than 40,000 tonnes of copper in 2022 with an estimated current mine life of over 15 years..
The purchase price equates to 4.5 times the mine’s estimated earnings before interest, tax, depreciation and amortisation for the 2022 financial year.