UK-registered copper mining firm Kazakhmys is all set to acquire the Koksay project, located in Kazakhstan, from CCC Mining Construction for $260m.
The transaction is subject to the Kazakhstan Government and regulatory approvals.
The companies have agreed to defer $65m of the total cost, with Kazakhmys set to pay $195m up front, $30m at the start of 2015 and $35m on 31 July 2015, with the remaining amount being subject to confirmation of reserves.
The Koksay mine is in south-eastern Kazakhstan around 234km from the Almaty Koksay deposit. It has a total resource of about 3.4 million tonnes of copper, with an average grade of 0.48%.
The mine is currently at scoping stage and also has by-products of gold, silver and molybdenum.
The project has an estimated mine life of more than 20 years, with an average annual production of about 80,000t of copper cathode equivalent, 60,000oz of gold, 400,000oz of silver and 1,000t of molybdenum in concentrate.
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Kazakhmys chief executive officer Oleg Novachuk said that Koksay will provide long-term growth beyond the company’s existing projects of Bozshakol and Aktogay.
"The acquisition is in-keeping with our strategy of production, dominated by low-cost, open pit, long-life mines," Novachuk said.
"Koksay will provide a sound return for shareholders, and local benefit through employment and economic growth."
Kazakhmys is the largest copper producer in Kazakhstan and has 16 operating mines and eight concentrators as well as a copper smelter.