Glencore, MAC amend terms on sale of CSA mine

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