Mine sale tip firms
SPECULATION that Toronto-listed Copper Mountain Mining could sell its Eva copper and gold project in northwest Queensland might be on the money, sources say.
The company did not deny a “possible transaction” when it responded to market speculation in an announcement to the Australian Securities Exchange last week.
It noted the company
“regularly reviews strategic opportunities”, adding that there were no pending transactions “at this time”.
Copper Mountain acquired the Eva project through its acquisition of Altona Mining for $93m in 2017 and values of $300m are now being quoted for the development project.
The Australian newspaper has reported that Copper Mountain is believed to be making moves towards a sale and that an investment bank has been hired.
The company’s comments contrast with the release of an updated development plan for Eva last year when it was announced the board had formally approved the plan to construct the project, subject to advancing engineering to a level of 80 per cent, obtaining finance and the lifting of Covid-19 restrictions. Total initial development capital for the project was estimated at $836m. Financing was hoped to be finalised by mid-2022 with commissioning of a mine and plant about 75km northwest of Cloncurry, employing more than 300 people, by late 2024.
The company now says the development plan is expected to be finalised in the third quarter of this year.
Company representatives told businesses in Cloncurry this week that “everything is progressing well”. Copper Mountain recently announced executive management changes including appointing Lance Newman to the position of senior vice-president Project Development, adding Australian country management to his role.
Glencore cut a $1bn deal last year for Evolution Mining to take full ownership of the Ernest Henry copper-gold mine near Cloncurry and earlier this year announced a binding agreement for Metals Acquisition Corp to buy its CSA copper mine in Cobar, NSW, for $1.1bn.