Australian mining company Aeris Resources looks set to acquire Glencore's CSA copper mine in Cobar, New South Wales, for $878 million in cash and shares.
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The two companies have reached late stage negotiations around Aeris' offer of $US575 million in cash and around $US50 million of shares, plus a royalty payable to Glencore.
Aeris said it had not finalised funding for the potential offer to Glencore, owners of Mount Isa Mines and Ernest Henry Mining.
"Whilst Aeris provides this information to ensure that Aeris shareholders are informed as to the current status of discussions around the offer, it is important to note that there is no guarantee that the potential acquisition will proceed," Aeris said in an ASX statement.
"Additionally, in the event that a formal agreement for the potential acquisition is entered into, it will likely be subject to a number of conditions including required shareholder approval."
Brisbane-based Aeris said it would update the market if and when the two companies reached an agreement in relation to an acquisition.
The CSA Mine is an underground copper mine that employs about 300 people and also mines silver as a co-product.
It produces 1.1 million tonnes of copper ore a year which is transported to Newcastle and exported to customers in Asia.
Formerly owned by Ashanti Goldfields, it was closed in the late 1990s and reopened by Glencore in 1999.
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
