Metals Acquisition Corp. (MAC) has entered into an agreement with Glencore plc to acquire the CSA copper mine in New South Wales, Australia. Glencore will receive US$1.05 billion in cash, US$50 million equity stake in MAC, and a 1.5% net smelter return life of mine royalty upon completion of the transaction.
MAC will assume ownership and full operational control of the mine and will enter into an offtake agreement with Glencore for 100% of the copper concentrate produced at the CSA mine.
MAC is a Special Purpose Acquisition Co. (SPAC) listed on the New York Stock Exchange. The transaction is expected to be completed in 2022.
The company disclosed that Patrice Merrin is a director of Glencore plc and is also chair of the board of directors of MAC. Merrin holds a less than 1% voting interest in MAC’s shares. MAC is not a related party of Glencore within the meaning of the UK Listing Rules, and Merrin has not participated in the consideration of the sale of CSA mine by the Glencore Board.