Shell company digs deep for Glencore copper

MAC Copper

18/03/2022 06:40

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Antony Currie
    MELBOURNE, March 18 (Reuters Breakingviews) - Cash and
potential new equity cover only half the $1.1 bln Metals
Acquisition is paying to buy an Aussie mine from the commodities
giant. A raft of debt and some future revenue will plug the gap.
Copper’s role in the energy transition makes the financial
engineering worthwhile. 
    Full view will be published shortly.
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    CONTEXT NEWS 
    - Glencore said on March 17 that it has agreed to sell its
CSA copper mine in New South Wales, Australia, to blank-cheque
firm Metals Acquisition for $1.1 billion. As part of the
transaction, Glencore will receive a $50 million equity stake
and a 1.5% net smelter return, or the share of revenue of mined
goods sold.

 (Editing by Jeffrey Goldfarb and Katrina Hamlin)
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