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September 23, 2021updated 02 Nov 2021 8:17am

Sandfire signs $1.87bn deal to acquire Spanish copper mining complex

Sandfire will retain a life-of-mine concentrate offtake agreement with Trafigura for all of Matsa’s production.

Australian mining firm Sandfire Resources has agreed to acquire the Minas De Aguas Teñidas (MATSA) copper mining complex in Spain in a $1.87bn deal.

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This binding sale and purchase agreement has been signed with global commodities trader Trafigura and Abu Dhabi state investor Mubadala, which jointly own the MATSA.

The complex includes the Aguas Teñidas, Magdalena and Sotiel underground mines, as well as a 4.7 million tonnes per annum (Mtpa) central processing facility at Aguas Teñidas.

Sandfire will retain a life-of-mine concentrate offtake agreement with Trafigura for all of Matsa’s production, as part of the deal.

Sandfire managing director and CEO Karl Simich said: “Base metal assets, which offer this combination of scale, grade, mine life and exploration upside, are extremely rare globally.

“The MATSA acquisition transforms Sandfire into a first quartile copper producer of global scale and allows us to leverage our skillset to deliver on our growth ambitions to create one of the highest quality and most compelling copper exposures on the ASX.

“The high-quality debt and equity funding package we have secured ensures that we can fully fund the acquisition of this Tier-1 asset while retaining balance sheet flexibility to deliver our Motheo Copper Mine in Botswana and maintain a global exploration programme.”

Sandfire expects the MATSA copper asset to immediately transform it into a leading diversified global base metals producer, and one of the largest copper-focused producers in Australia.

To fund the transaction, the company will issue a $650m debt facility secured by MATSA and undertake a $905m equity raise.

Sandfire also intends to draw down $145m from its existing debt facility and use $215m of its own cash to finance the acquisition.

Post-transaction, the firm anticipates production ranging between 170kt and 194kt of copper equivalent in fiscal 2022.

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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