Glencore, MAC amend terms on sale of CSA mine

Glencore and Metals Acquisition Corp (MAC) said they had agreed to amend terms on the sale of the CSA copper mine in Australia.

MAC will now get at least $775m in cash on deal close, with the potential for this to be scaled up to $875m depending on final private equity demand, plus a maximum of $100m in retained equity in the business by Glencore, with an option to scale back subject to MAC raising sufficient equity.

There will also be a $75m deferred cash payment, payable upon MAC’s listing on the Australian Stock Exchange or alternative equity raise and $150m in cash structured as two contingent payments.

Glencore in March agreed to sell the mine to MACs, a special purpose acquisition company, in March in return for $1.05bn in cash and $50m in equity, plus a 1.5% copper net smelter royalty that will be paid to Glencore after completing the sale of the mine.

Reporting by Frank Prenesti for Sharecast.com