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Copperstone to buy copper project
Posted on Thursday, 09 August 2018 12:43
Copperstone Resources has signed a non-binding letter of intent to buy Avalon Minerals Viscaria from Sunstone Metals.
Under the terms of the acquisition, the buyer will offer 160.00 million B-shares and SEK 40.00 million (USD 4.46 million).
A further 46.00 million scrips of Copperstone’s B-stock and SEK 20.00 million in cash will be added upon the receipt of an environmental permit.
Subject to finalised due diligence and the approval of extraordinary general meetings for both buyer and Sunstone, the deal is expected to complete in November 2018.
As a result of the transaction, the buyer will acquire the Viscaria deposit, as well as its other assets including drill cores, data, internet protocol and core shed facility.
Upon completion, Sunstone is expected to be the largest shareholder in Copperstone.
Headquartered in Kiruna, Sweden, Viscaria consists of 345.00 kilometers of drill cores alongside 52.40 million tonnes (mt) of mineral resources, of which 1.2 per cent, or 608,900 tonnes, is copper.
Between 1983 to 1997, its Luossavaara-Kiirunavaara Aktiebolag (LKAB) and Outokumpu operations generated 12.50 million tonnes, with copper equating to 287,000, or 2.3 per cent of this amount.
Copperstone specialises in the mining of base and precious metals in the north Swedish mining region of Skellefte.
It focuses on locating and proving the existence of porphyry copper mineralisation in the Grandliden area.
The buyer’s copper project sites in Grandliden, Svartilden and Eva assets combined with Viscaria, will provide greater employment opportunities within the target’s Norrbotten region.
Further benefits of the deal include Sunstone’s international expertise in international copper porphyry discoveries, which include exploration projects across Scandinavia and Ecuador.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 707 deals targeting metal ore mining providers announced worldwide since the beginning of 2018.
Tianqi Lithium Industries, in the largest of these deals, acquired a minority stake in industrial chemicals manufacturer Sociedad Quimica y Minera de Chile for USD 4.07 billion.
© Zephus Ltd