Blank-check firm to buy Turkish mine in $290 mln bet on copper demand

ACG Metals

18/07/2024 15:58

* 
      Subsidiary of Turkey's Calik Holding to get a 30% stake in
ACG
    

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      ACG eyes several other copper targets for consolidation
    

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      Gediktepe mine currently produces gold and silver
    

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      The deal brings in $145 mln to start copper, zinc
production
    

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      Annual output seen at up to 25,000 T of copper equivalent
    

  
       LONDON, July 18 (Reuters) - Blank-check firm ACG
Acquisition  ACGa.L  is buying a Turkish mine, which plans to
start copper and zinc production in 2026, in a $290-million deal
with a subsidiary of Turkish conglomerate Calik Holding, ACG
said on Thursday.
    The deal, a bet on growing demand for copper from the energy
transition, includes funding for the $145-million expansion of
the mine to reach annual production of up to 25,000 metric tons
of copper equivalent.
    The Gediktepe mine "marks the beginning of ACG's global
copper consolidation strategy. The company is actively engaged
in discussions with several further targets," the blank check -
or special purpose acquisition company (SPAC) - said.
    SPACs are shell companies that raise money via an initial
public offering (IPO) and later merge with a private company,
taking it public.
    The Calik subsidiary will get a 30%-stake in ACG and $100
million in cash.     
    In September, ACG's $1 billion deal to buy a nickel mine and
a copper mine in Brazil was terminated when backers of the
transaction, including a leading global miner and top
automakers, tried to revise it.
    This time, ACG said it had received commitments for 100% of
the required funding for the deal and the mine expansion. The
mine produced 34,000 troy ounces of gold and 361,000 ounces of
silver in 2023.
    The source of the funds includes $135 million in debt and
equity from an unidentified mining private equity fund, debt and
equity of up to $25 million from metals trader Traxys, and
equity of $60 million from ACG's co-sponsors and an unidentified
European family office.
    ACG expects the acquisition to complete before Aug. 31.

 (Reporting by Polina Devitt; Editing by Mark Potter)
 ((polina.devitt@thomsonreuters.com; Reuters Messaging:
polina.devitt.thomsonreuters.com@reuters.net))