Swiss commodity company Glencore has closed the sale of Cobar Management, which owns the Cobar copper mine in New South Wales, Australia, to Metals Acquisition Corp (MAC).

According to the deal, which was announced in March 2023, Glencore has received $775m (€708.67m) in cash and 100 million MAC shares.

Upon the closing of the transaction, Glencore now holds a 20.6% stake in MAC, which will assume ownership and full operational control of the copper mine.

The transaction also includes a $75m deferred payment to be paid within 12 months, a 1.5% life of mine net smelter return royalty and a $150m contingent payment, depending upon future copper prices.

MAC CEO Mick McMullen said: “I want to thank the large group of investors that supported our recent PIPE totalling $230m, our other funding partners, our advisers who have worked resolutely, as well as Glencore for working steadfastly with us throughout the entirety of our transaction.

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“Today is truly an exciting moment for all of us at Metals Acquisition Limited, the new owner and operator of this historic asset. We look forward to working with the CSA Mine team to make this a great foundational asset for MAC.”

The sale forms part of Glencore’s strategy to simplify and align its global portfolio to focus on lower-cost, long-life assets.

Employing 500 people, including contractors, the CSA Mine has a 40,000 tonnes per annum copper production capacity.