Miner Kazakhmys Plc (KAZ.L) reported concluding the agreement for the acquisition of Koksay from CCC Mining Construction B.V., an unrelated private company. The company said Koksay would be the Group's third major growth project.
The net acquisition cost would amount to $260 million in cash, out of which $65 million is deferred. Of the deferred consideration, $30 million is payable on 1 January 2015 and $35 million on 31 July 2015. The latter is subject to confirmation of reserves.
Situated in south eastern Kazakhstan nearly 234 kilometres from Almaty, the Koksay deposit is well located for existing infrastructure. The mine has a total resource of about 3.4 MT of copper, with an average grade of 0.48%. There are by-products of gold, silver and molybdenum.
The project is at scoping stage and has an estimated mine life of more than 20 years with average annual production of around 80 kt of copper cathode equivalent, 60 koz of gold, 400 koz of silver and 1 kt of molybdenum in concentrate, according to Kazakhmys.
The completion remains subject to Government of Kazakhstan and regulatory approvals.
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