MMG to sell Golden Grove copper-zinc mine to EMR Golden Grove Holdings
MMG has reached a deal to sell its Golden Grove copper and zinc mine in Western Australia to EMR Capital unit EMR Golden Grove Holdings as part of a conditional share sale agreement.
EMR Capital is run by Owen Hegarty and will pay MMG $210m as consideration for this acquisition.
The transaction is subject to MMG board approval and financer consent along with customary closing conditions.
EMR has already paid $15m and the remaining amount will be paid upon completion of the deal.
MMG expects that the transaction will be completed by February 2017 after satisfying all required conditions.
Once the deal concludes, economic risk and benefit of the Golden Grove mine will be transferred to EMR, effective from 1 January 2017.
MMG’s board of directors of is expected to meet on 31 January and make the final decision on the sale. MMG started the Golden Grove sales process in August 2016.
MMG originally bought this mine in 2011 from Oz Minerals, reported The Australian.
Goldman Sachs is acting as the financial advisor and Clayton Utz as legal counsel for MMG in the transaction.