Business
Marubeni Transaction
Marubeni Transaction.
About this update from Antofagasta Plc
[{"type":"text","content":"\n Antofagasta PLC\n24 April 2008\n\n\n\n Antofagasta plc\n\n Antofagasta brings a partner to Minera Esperanza and Minera El Tesoro\n\nLondon, 24 April 2008\n\nAntofagasta plc ('Antofagasta') is pleased to announce that it has entered into\nan agreement with Marubeni Corporation ('Marubeni') under which Marubeni will\nacquire a 30% interest in each of Minera Esperanza and Minera El Tesoro ('the\nMarubeni Transaction'). Minera Esperanza and Minera El Tesoro hold, or will hold\nat closing, the Esperanza and Telegrafo deposits and the El Tesoro mine and\nTesoro North-East deposits, respectively. Marubeni will pay a combined cash\nconsideration of US$1.31 billion (plus interest thereon from signing to\ncompletion and subject to other closing adjustments) for its stake in both\nentities, and will be responsible (from and after 1 January 2008) for its share\nof development costs for the Esperanza project, which are currently estimated at\napproximately US$1.9 billion. Antofagasta in turn will fund its retained share\n(70%) of the development costs of the Esperanza project (after project\nfinancing), as well as the costs of acquiring through Antomin Limited\n('Antomin') certain mining properties required for the development of the\nEsperanza project and the extension of the El Tesoro mine (as described below),\nin amounts essentially equivalent to the proceeds resulting from the Marubeni\nTransaction. Closing of the Marubeni Transaction, which is subject to a number\nof conditions including receipt of necessary environmental approvals at\nEsperanza and the completion of the transfer of certain mining properties to\nMinera Esperanza and Minera El Tesoro, is expected to occur in the third quarter\nof 2008.\n\n\nThe Esperanza project and the El Tesoro mine are located in the Sierra Gorda\ndistrict in Chile's II Region, which is a key area of focus for Antofagasta.\nThis district has estimated combined mineral resources (including Esperanza,\nTelegrafo, El Tesoro and Tesoro North-East) of approximately 3 billion tonnes,\nwith the potential for development as a single mining complex for the processing\nof both sulphide and oxide ores. The Marubeni Transaction also permits\nAntofagasta to introduce further properties in the Sierra Gorda district to the\nventure with Marubeni in the future.\n\n\nTo facilitate the Marubeni Transaction, Antofag...