https://www.engineeringnews.co.za

Altona focus shifts to Little Eva as it sells Finnish assets for $100m

Altona focus shifts to Little Eva as it sells Finnish assets for $100m

Photo by Bloomberg

8th July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Copper miner Altona Mining has inked a deal with Swedish base metal miner Boliden Mineral to divest of all its Finnish operations and its exploration assets in a deal worth $100-million.

Altona owns the Outokumpu project in South East Finland which comprises the Luikonlahti mill and two mines, as well as numerous deposits in the surrounding area.

The company has developed the Kylylahti copper/gold/zinc mine about 40 km from the mill, which was estimated to host some 8.8-million tonnes, grading 1.33% copper, 0.78 g/t gold and 0.54% zinc for some 117 480 t of copper, 222 595 oz of gold and 47 401 t of zinc.

Altona also owns 95% of the Kuhmo nickel project, in Finland.

Under the terms of the transaction, Boliden would pay $95-million for the assets, along with adjustments for working capital, net debt and net capital expenditure during the settlement period.

Altona would retain the Hautalampi project, near Outokumpu, but has granted Boliden an option to either mine the deposit in exchange for the payment of a 2% net smelter royalty, or to purchase the project outright for a further $3-million. The option has a ten-year term.

Altona would also retain the Sarkeniemi nickel mine.

Altona told shareholders on Tuesday that following the transaction the company intended to make a cash payment of 15c a share to shareholders, which equated to about A$80-million in total. The payment would comprise a combination of an equal capital reduction, a buy-back of shares or a dividend.

The company would also retain between A$40-million and A$45-million in cash from the sale of the asset, full ownership of the Little Eva project, in Queensland and an interest in the adjacent Chinalco Yunnan Roseby exploration joint venture.

Altona’s focus would shift entirely towards the development of the Little Eva asset, with the company looking to enhance the project through resource definition drilling at the satellite deposits, and to realise value through either a strategic partnership or a sale of the asset.

The Boliden transaction would be subject to a number of conditions, including shareholder approval, as well as Finnish regulatory approval.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Magni SA
Magni SA

Magni SA is committed to developing the safest Telehandlers available to our customers for underground and surface mining, construction, forestry,...

VISIT SHOWROOM 
Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.088 0.145s - 156pq - 2rq
Subscribe Now