Australian Newcrest Mining Acquires Major Stake in Red Chris, B.C. Copper-Gold Mine
Melbourne-based Newcrest Mining-Australia’s leading gold producer has announced acquisition of majority stake in Imperial Metals’ Red Chris copper and gold mine located in the province of British Colombia, Canada. The deal is subject to customary closing conditions including regulatory approvals and is expected to be completed in Q3 this year.
Newcrest will pay USD 806.5 million in cash in return for the 70% joint-venture interest. The company will primarily use the proceeds of the sale in repaying its debts.
As per the deal, Newcrest will operate the Red Chris mine. Also, Imperial Metals will retain a 30% interest in the mine, in addition to acquiring surrounding tenements.
Brian Kynoch, President, Imperial Metals, in a statement, noted that the strategic partnership with the world’s third leading gold producer by market value will help the company to strengthen its balance sheet. The joint venture partnership will help enable the company to unlock significant value at the mine by leveraging Newcrest’s technical expertise.
Sandeep Biswas, chief executive, Newcrest Mining noted that Red Chris gives the company a producing asset in North America that offers significant underground development opportunities. The company will utilize its vast experience and resources to maximize the mine value and opportunities in the surrounding region, he added.
The open-pit mine, which started commercial production in July 2015, is estimated to contain 20 million ounces of gold and 13 billion pounds of copper. It currently employs approximately 500 people.