A PYMNTS Company

US: South32 concludes US$1.3b acquisition of Arizona Mining

 |  August 13, 2018

Australian mining conglomerate South32 said it had completed the US$1.3 billion acquisition of Vancouver, Canada-based Arizona Mining, a zinc exploration company that is developing the Taylor deposit, located in a prospective area called Hermosa south, near Tucson.

The transaction, completed through a plan of arrangement, involved the payment of CA$6.20 (US$4.72) per share to Arizona Mining shareholders. South32 had previously bought a 17% stake in 2017, later increased to 19.9%.

“The acquisition of Arizona Mining adds to our portfolio one of the most exciting base metal projects in the industry,” said Graham Kerr, CEO of South32 in a statement.

The work will include optimising studies and the start of the exploration decline which will allow drilling to test for extensions and further enhance our understanding of the existing high-grade resource.

A January preliminary economic assessment outlined a US$519 million capital cost for a 29-year operation producing an average 946 million pounds of zinc and 9.5 million ounces of silver in the first five years at all-in sustaining costs of US61 cents per pound of zinc.

Full Content: Mining Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.