Business
Pallancata and Inmaculada Minorities Acquisition
Pallancata and Inmaculada Minorities Acquisition.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n \nRNS Number : 4854P Hochschild Mining PLC 02 October 2013 \n \n\n \n \n \n2 October 2013\n \nTHIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES. THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR FORM A PART OF ANY OFFER TO SELL OR SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR SECURITIES IN THE UNITED STATES, AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN JERSEY OR PERU OR ANY JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO.\n \nHochschild Announces Proposed Acquisition of Pallancata and Inmaculada Minorities\n \nHighlights \n· Proposed acquisition of IMZ's 40% stake in the Pallancata mine and Inmaculada Advanced Project for a total value of approximately $280 million, including net cash consideration of $271 million\n· Transaction to be structured as an acquisition of the IMZ common shares not currently held by Hochschild, after the spin-out of the remaining assets to existing IMZ shareholders\n· Consolidates minority shareholding in assets already controlled and operated by Hochschild\n· Reduces average unit cost\n· Equity placing of between 4.99% - 9.99% of Hochschild's outstanding share capital, representing approximately $48 - $96 million[1], of which Eduardo Hochschild has irrevocably undertaken to subscribe for the lower of 4.99% of the total issued share capital of the Company and $50 million (see concurrent 2 October 2013 Placing Announcement for further details).\n· $340 million acquisition bridge financing facility arranged, subject to cancellation of the $140 million Suyamarca loan facility\n· Crespo project to be deferred to focus capex spend on Inmaculada Project\n \nThe Acquisition\nHochschild Mining plc (\"Hochschild\" or the \"Company\") is pleased to announce that it has entered into a binding agreement to acquire the 40% interests held by International Mineral Corporation (\"IMZ\") in the Pallancata mine and Inmaculada Advanced Project in Peru (the \"Peruvian Assets\", and collectively the \"Acquisition\"). The transaction will be executed by way of a court-appr...