Glencore mine takeover falls through
Aeris Resources’ proposed acquisition of Glencore’s CSA copper mine has collapsed.
Located in Cobar, New South Wales, on 20 March 2019 Aeris initially offered Glencore A$878m for the underground mine, to be paid in cash, shares and royalties.
But today, Aeris said it had withdrawn the offer in order to focus on its existing copper projects.
‘Whilst it is disappointing that the acquisition of the CSA mine couldn’t be completed, Aeris remains focused on its Tritton copper operations, the Torrens exploration project and exploring growth opportunities, both organic and through mergers and acquisitions,’ said Aeris Resources Executive Chairman Andre Labuschagne, in a company statement today.
The decision has not come as a surprise, as the company had sparked doubts in a press release in early April, confirming that talks were ongoing but that agreement had not been reached on ‘the transaction, nor on the funding structure’.
CSA is the highest grade copper mine in Australia, operated by Cobar Management Pty Ltd, under the ownership of Glencore. It produces more than 185,000 tonnes of copper concentrate a year, with silver as a byproduct.