The Base Metals Royalties are across third party interests in a mix of producing assets and advanced development stage projects, largely in copper and nickel in Australia, USA and Chile.
South32 agrees to sell Base Metals Royalties. (Credit: Rolf Dobberstein from Pixabay)
South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) is pleased to announce that it has entered into a binding agreement for the sale of a package of four non-core base metals royalties (Base Metals Royalties) to London Stock Exchange listed Anglo Pacific Group Plc (Anglo Pacific). The total sale price includes US$185M of fixed consideration plus contingent payments of up to US$15M1. The Base Metals Royalties are across third party interests in a mix of producing assets and advanced development stage projects, largely in copper and nickel in Australia, USA and Chile.
There are no conditions precedent for the transaction, with completion expected within five business days. The fixed consideration includes US$103M in cash payments2, and US$82M of Anglo Pacific shares, which will be issued to South32 on completion. Following completion, South32 will hold a ~16.9% interest in Anglo Pacific.
Today’s transaction follows our successful divestment of four precious metal royalties to Elemental Royalties Corp. (Elemental) in 2021 for a US$40M cash payment and US$15M in Elemental shares3.
South32 Chief Executive Officer, Graham Kerr said: “Today’s sale of another non-core royalty package is a further step forward in unlocking latent value from our portfolio. The proposed transaction will realise an immediate cash payment, while also retaining long-term exposure to these royalties through our shareholding in Anglo Pacific.
Following the sale, we still retain an exciting package of 36 royalties at different stages of maturity, weighted towards base metals.”
Scotiabank are acting as financial advisor and Herbert Smith Freehills, Cariola Díez Pérez-Cotapos and McCarthy Tetrault are acting as legal advisors.
Source: Company Press Release