South32 to Acquire 45% Stake in Chile's Sierra Gorda From Sumitomo
October 13 2021 - 7:39PM
Dow Jones News
By Stuart Condie
SYDNEY--South32 Ltd. will pay up to $2.05 billion for a 45%
stake in Chile's Sierra Gorda copper mine.
The Australian diversified miner on Thursday said it had entered
into binding agreements with Sumitomo Metal Mining and Sumitomo
Corp. to acquire the interest. It said it would pay $1.55 billion
in cash up-front, plus a contingent price-linked consideration of
up to $500 million over the 2022 through 2025 fiscal years.
South32 will have joint-control of Sierra Gorda alongside KGHM
Polska Miedz, which holds a 55% stake in the project.
South32 said it will fund the acquisition with a combination of
cash-in-hand and a $1 billion underwritten debt facility. It had a
$660 million cash balance at the end of September and expects the
transaction to be immediately earnings accretive.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
October 13, 2021 19:24 ET (23:24 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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