First Quantum Minerals (TSX: FM) has entered into an agreement to sell off one of its past producing mines. The company has come to terms for the sale of the Cobre Las Cruces mine in Spain.
The transaction will see the past producing mine sold to Global Panduro for total consideration of up to $190 million, plus a profitability-linked earn out provision.
Consideration is to consist of $45 million in cash at closing plus the issuance of a $65 million loan note to First Quantum. A further $80 million is in the form of deferred payments tied to project development milestones, while a contingent payment is tied to 10% of the proceeds from an exit liquidity event over and above certain internal rate of return thresholds.
The Cobre Las Cruces Mine, found 20 kilometres northwest of Seville, Spain, is a past producing copper mine that operated from 2009 through to 2023, producing approximately 700,000 tonnes of copper cathode over that time. The mine has been proposed to be redeveloped as a polymetallic mine, based on a technical report completed by First Quantum last year. The proposed redevelopment would see the existing mine site via a new underground mine feeding a polymetallic refinery for the production of copper, zinc, lead and silver.
First Quantum Minerals last traded at $36.95 on the TSX.
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