Metals Acquisition Limited announces strategic investment in Polymetals Resources Limited (ASX:POL)

ST. HELIER, Jersey, May 27, 2024–(BUSINESS WIRE)–Metals Acquisition Limited (NYSE: MTAL; ASX: MAC)

Metals Acquisition Limited ARBN 671 963 198 (NYSE: MTAL; ASX: MAC) (“DUSTER” or “Business“) is pleased to announce that it has signed a subscription agreement constituting a strategic investment with Polymetals Resources Limited (“HALF“).

The advantages of the investment include:

• MAC will initially invest a total of A$2.5 million at a price of A$0.35 per share, giving an initial 4.31% stake in POL.

• MAC will invest a total of an additional A$2.5 million at a price of A$0.35 per share, subject to certain conditions precedent, including:

  • POL secures sufficient funding to restart the Endeavor mine and processing plant;

  • conclusion by POL and MAC of an agreement for the processing of zinc ore supplied to POL by MAC (with a processing fee of + 35%);

  • POL and MAC enter into a water offtake agreement under which POL will enable MAC to withdraw 150 ml of water per year from the Endeavor mine pipeline for a period of 4.5 years. MAC will have the option to extend the contract beyond the initial 4.5 years on terms agreed in good faith between the parties; AND

  • MAC securing all necessary third party consents (including from secured lenders and Glencore Plc) to proceed with the contemplated transactions.

• MAC will have the right to appoint one director to the POL board, while MAC will hold >7% of POL’s issued shares.

POL owns the rights to the Endeavor silver and zinc mine, located approximately 40 km north of the CSA Copper Mine. Over the mine’s 38 years of operation, Endeavor has produced approximately 92 million ounces of Ag, 2.6 million tonnes of Zn and 1.6 million tonnes of Pb and is one of the most prolific producers in the Cobar Basin.

Strategically, the ability to treat potential high-grade zinc mineralization near the surface of the CSA Copper Mine at Endeavor has the potential to create significant value for our shareholders. Additionally, securing 150ML of water intake for the next 4.5 years (with the possibility of extension) also increases the potential processing that we can achieve at the CSA Copper Mine at a low cost.

POL’s management team has over 30 years of experience in exploring, developing and operating mines in the Cobar Basin and acquired the mine with the intention of resuming operations. The property has significant infrastructure including an underground mine with drop and hoist, a 1.2 MTPA processing plant, power, water, rail and workshop networks.

– commented MAC CEO Mick McMullen “We believe that this type of transaction is an example of how cooperation in the Cobar Basin can potentially extract the best value in the Basin. As recently announced, the CSA copper mine appears to contain high-grade zinc mineralization near surface and adjacent to We believe that the ability to process this material at Endeavor has the potential to create significant value for our shareholders, subject to successful exploration, modifiers and certain permits. This is a logical way to secure the ability to process any zinc ore we could mine without diverting our operations from our core business of copper mining and recovery.

The story continues

Securing the intake of 150 ml of water for the next 4.5 years (with the possibility of extension) from the pipeline running right next to our plant also increases the potential throughput we can achieve at the CSA Copper Mine at low cost.

By investing in POL, we create a partnership to achieve better results for both companies. We have known the POL management team for over 20 years, they bring a wealth of experience to this area and can manage mines very effectively, which is why we are very supportive of their efforts to reopen the Endeavor mine, as well as explore their next mine environment, which, like the CSA copper mine, is very poorly researched for all base metals, including copper.

We continue to evaluate opportunities to add value to our business, both organic and inorganic.”

MAC’s rights to extend the initial 4.5-year term of the Water Withdrawal Agreement are subject to the Foreign Investment Review Board (FIRB) approval (to the extent required). Subscription of POL shares by MAC does not require FIRB consent.

This announcement has been approved for publication by the Board of Directors.

About Metals Acquisition Limited

Metals Acquisition Limited (NYSE: MTAL; ASX:MAC) is a company focused on operating and acquiring metals and mining businesses in stable, high-quality jurisdictions that are critical to the electrification and decarbonization of the global economy.

Forward-looking statements

This information has been prepared by Metals Acquisition Limited (the “Company” or “MAC”) and contains “forward-looking statements”. Forward-looking information is based on the expectations, estimates, forecasts and opinions of the Company’s management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that the Company’s management believes to be material and reasonable in the circumstances as of the date such forward-looking information is made. statements, but which may turn out to be incorrect. The Company has made assumptions regarding, among others: the price of copper, the continuation of commercial production at the CSA Copper Mine without major disruptions, obtaining the required government approvals, the accuracy of capital and operating cost estimates, the Company’s ability to operate in a safe, efficient and effective manner, and the Company’s ability to obtain financing when needed and on reasonable terms. Readers are cautioned that the above list is not exhaustive of all factors and assumptions that may have been made by the Company. Although management believes that the Company’s assumptions and expectations reflected in such information are reasonable, there can be no assurance that forward-looking information will prove to be accurate.

MAC’s actual results may differ from expectations, estimates and projections and you should not rely on forward-looking statements as predictions of future events. Words like “expect”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”, “should” , “”believes,” “anticipates,” “potential,” “continues” and similar expressions (or negative versions thereof) are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, MAC’s expectations regarding the future performance of the CSA Copper Mine. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are beyond MAC’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: supply and demand for copper; future price of copper; the timing and volume of estimated future production, production costs, capital expenditures and the need for additional capital; cash flows provided by operating activities; unforeseen reclamation expenses; claims and limitations of insurance coverage; uncertainty of mineral resource estimates; uncertainty in geological, metallurgical and geotechnical research and opinions; infrastructure risk; and other risks and uncertainties identified from time to time in MAC’s other filings with the SEC and ASX. MAC cautions that the above list of factors is not exclusive. MAC cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. MAC disclaims any obligation or obligation to publicly release any updates or revisions to any forward-looking statements that would reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

More information about potential factors that may affect the financial results of MAC or CSA Copper Mine is included from time to time in MAC’s public reports filed with the SEC and ASX. If any of these risks materialize or MAC’s assumptions prove incorrect, actual results could differ materially from those suggested by these forward-looking statements. There may be additional risks that MAC is not currently aware of or that MAC believes are not currently material that could also cause actual results to differ from those contained in the forward-looking statements. Additionally, forward-looking statements reflect MAC’s expectations, plans or projections regarding future events and views as of the date of this release. MAC anticipates that subsequent events and developments will cause its ratings to change. However, while MAC may elect to update these forward-looking statements at some time in the future, MAC specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing MAC’s assessment as of any date subsequent to the date of this release. Accordingly, you should not place undue reliance on forward-looking statements.

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Communication

Mick McMullen
Chief Executive Officer
Metals Acquisition limited liability company
[email protected]

Dan Vujicic
Director of Development
Metals Acquisition limited liability company