- Copper Mountain (CMMC) has signed an asset sale agreement with Harmony Gold Mining
- The assets include Copper Mountain’s Eva Copper Project and its 2,100 km2 exploration land package in Queensland, Australia
- Consideration could reach as high as US$230 million, with the transaction expected to close in Q1 2023
- Copper Mountain now expects to self-fund activity at its Copper Mountain Mine moving forward
- Copper Mountain Mining is a copper producer, developer and explorer active in B.C. and Australia
- Copper Mountain (CMMC) is up by 22.36 per cent, trading at $1.97 per share
Copper Mountain (CMMC) has signed an asset sale agreement with Harmony Gold Mining.
Harmony is a leading gold mining and exploration company with a copper footprint operating in South Africa and Papua New Guinea. It boasts over 70 years of history in the industry.
The assets in question include Copper Mountain’s wholly-owned Eva Copper Project and its 2,100 km2 exploration land package in Queensland, Australia.
Consideration could reach as high as US$230 million under the following terms:
- US$170 million in cash payable on closing
- Up to US$30 million in cash, where Harmony will pay Copper Mountain 10 per cent of the incremental revenue generated from the project and land package assuming US$3.80/lb copper
- Up to US$30 million in cash, where Harmony will pay Copper Mountain US$0.03 per pound of copper for any SAMREC copper resource discovered on a new deposit within the project or land package
As a result of the transaction and expected cash flows from copper production, Copper Mountain expects to self-fund operations and processing expansion at its Copper Mountain Mine in B.C. moving forward.
The companies expect the transaction to close in Q1 2023.
“We are pleased with this transaction, as it demonstrates the value the company has developed in the Eva Copper Project since our acquisition of Altona Mining in 2018,” stated Gil Clausen, Copper Mountain’s President and CEO. “It also recognizes the exploration upside that exists on the surrounding prospective land package.”
Copper Mountain Mining is a copper producer, developer and explorer active in B.C. and Australia.
Copper Mountain (CMMC) is up by 22.36 per cent, trading at $1.97 per share as of 10:36 am EST.
