- The transaction would allow the Australian gold miner to own a 70% stake in Imperial Metals Corp’s Red Chris mine in British Columbia.
- Newcrest also announced that the company is still capable of making more acquisitions and is actively looking for more opportunities.
Newcrest Mining Limited (Newcrest), a renowned Australian mining company, has reportedly announced its acquisition of the Red Chris copper & gold mine located in Canada in a $806.5 million deal with Canadian mining company, Imperial Metals Corporation (Imperial).
Reports cite, the transaction would allow the Australian gold miner to own a 70% joint-venture (JV) interest in as well as operatorship of Imperial’s Red Chris mine along with its surrounding tenements across British Columbia.
According to a press release by Newcrest Mining, the Red Chris mine acquisition allows the company to make a measured entry into the mining industry in North America and is in line with the company’s strategic goal of constructing a global Tier-1 orebodies portfolio, where it could deliver value to the industry through the implementation of the unique Newcrest operating capabilities. Moreover, the company also believes that the acquired land package possesses promising exploration opportunities.
The Chief Executive Officer of Newcrest Mining, Sandeep Biswas while addressing the acquisition also stated that a look at the company’s balance sheet metrics show that it is still within its financial metrics and if any new opportunities were to emerge that would be in Newcrest’s interest, then it does not feel restricted to act upon the prospect.
Newcrest would reportedly be funding the Red Chris mine acquisition through a combination of cash & undrawn bank facilities, which the company possessed more than $3 billion worth of at the end of 2018.
According to reports, following the announcement, Newcrest shares witnessed a 2.6% surge with each share trading at AUD25.13 on the Australian bourse by 0132 GMT.