VANCOUVER, BC, Oct. 6, 2022
/PRNewswire/ - Copper Mountain Mining Corporation (TSX:
CMMC) (ASX: C6C) (the "Company" or "Copper Mountain") is
pleased to announce it has entered into a definitive agreement with
Harmony Gold Mining Company Limited (JSE: HAR) (NYSE: HMY)
("Harmony") to sell its wholly-owned Eva Copper Project and its
2,100km2 exploration land package in Queensland, Australia for total consideration
of up to US$230 million (the
"Transaction").
Under the terms of the Transaction, Copper Mountain will receive
the following consideration:
A. US$170,000,000 in cash payable on closing of the
Transaction;
B. Up to US$30,000,000 in cash, based on a contingent
payment arrangement where Harmony will pay Copper Mountain 10% of
the incremental revenue generated from the Eva Copper Project and
the Australian exploration land package above the revenue assuming
a US$3.80/lb copper price; and
C. Up to US$30,000,000 in cash, based on a contingent
payment arrangement where Harmony will pay Copper Mountain
US$0.03 per pound of contained copper
for any SAMREC copper resource discovered and declared on a new
deposit within the Eva Copper Project and the Australian
exploration land package after the closing of the Transaction.
Gil Clausen, Copper Mountain's
President and CEO, stated, "We are pleased with this transaction as
it demonstrates the value the Company has developed in the Eva
Copper Project since our acquisition of Altona Mining Limited in
2018. It also recognizes the exploration upside that exists on the
surrounding prospective land package."
Letitia Wong, Copper
Mountain's CFO, added, "This transaction strengthens our balance
sheet and allows the Company to evaluate options with respect to
our long-term capital structure. Further, as our recently announced
Life of Mine plan demonstrates, the Copper Mountain Mine is
expected to generate healthy free cash flow starting in 2023 and we
expect mine operations and the 65,000 tonnes per day expansion to
be self-funded going forward."
The closing of the Transaction is subject to certain customary
conditions, including approval from the Foreign Investment Review
Board (FIRB) in Australia and
Copper Mountain bondholder approval. The Transaction has received
approval from the South African Reserve Bank (SARB) and is not
subject to any financing conditions. The Transaction is expected to
close in the first quarter of 2023.
Advisors and Counsel
Macquarie Capital is acting as financial advisor to Copper
Mountain. Davies Ward Phillips &
Vineberg LLP and Corrs Chambers Westgarth are acting as Canadian
and Australian legal counsel, respectively, to Copper Mountain.
About Copper Mountain Mining
Corporation
Copper Mountain's flagship asset is the 75% owned Copper
Mountain Mine located in southern British
Columbia near the town of Princeton. The Copper Mountain Mine currently
produces approximately 100 million pounds of copper equivalent per
year. Copper Mountain also has the 100% owned
development-stage Eva Copper Project and an extensive 2,100
km2 highly prospective land package in in Queensland, Australia. Copper Mountain trades
on the Toronto Stock Exchange under the symbol "CMMC" and
Australian Stock Exchange under the symbol "C6C".
Additional information is available on the Company's web page at
www.CuMtn.com.
On behalf of the Board of
COPPER MOUNTAIN MINING CORPORATION
"Gil
Clausen"
Gil Clausen
President and Chief Executive Officer
Cautionary Note Regarding
Forward-Looking Statements
This news release may contain "forward looking information"
within the meaning of Canadian securities legislation and
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995
(collectively, "forward-looking statements"). These forward-looking
statements are made as of the date of this news release and Copper
Mountain does not intend, and does not assume any obligation, to
update these forward-looking statements, whether as a result of new
information, future events or otherwise, except as required under
applicable securities legislation.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
relate to future events or future performance and reflect Copper
Mountain's expectations or beliefs regarding future events.
In certain circumstances, forward-looking statements can be
identified, but are not limited to, statements which use
terminology such as "plans", "expects", "estimates", "intends",
"anticipates", "believes", "forecasts", "guidance", scheduled",
"target" or variations of such words, or statements that certain
actions, events or results "may", "could", "would", "might",
"occur" or "be achieved" or the negative of these terms or
comparable terminology. In this news release, certain
forward-looking statements are identified, including the Company's
potential plans with respect to its long-term capital structure,
anticipated timing for the Copper Mountain Mine to generate free
cash flow and become self-funding, anticipated timing for the
closing of the Transaction, entitlement to any contingent
consideration under the Transaction, obtaining and satisfying
customary conditions (including FIRB approval and Copper Mountain
bondholder approval), anticipated production at the Copper Mountain
Mine, and expectations for other economic, business and/or
competitive factors. Forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual results, performance, achievements and opportunities to
differ materially from those implied by such forward-looking
statements. Factors that could cause actual results to differ
materially from these forward-looking statements include, among
others, the parties' ability to consummate the Transaction, the
ability of the parties to satisfy, in a timely manner, all
conditions to the closing of the Transaction, assumptions
concerning the Transaction and the operations and capital
expenditure plans of the Company following completion of the
Transaction, the potential impact of the announcement or
consummation of the Transaction, the diversion of management time
on the Transaction, the successful exploration of the Company's
properties in Canada and
Australia, market price, continued
availability of capital and financing and general economic, market
or business conditions, extreme weather events, material and labour
shortages, the reliability of the historical data referenced in
this document and risks set out in Copper Mountain's public
documents, including the management's discussion and analysis for
the quarter ended June 30, 2022 and
the annual information form dated March 29,
2022, each filed on SEDAR at www.sedar.com. Although Copper
Mountain has attempted to identify important factors that could
cause the Company's actual results, performance, achievements and
opportunities to differ materially from those described in its
forward-looking statements, there may be other factors that cause
the Company's results, performance, achievements and opportunities
not to be as anticipated, estimated or intended. While the Company
believes that the information and assumptions used in preparing the
forward-looking statements are reasonable, undue reliance should
not be placed on these statements, which only apply as of the date
of this news release, and no assurance can be given that such
events will occur in the disclosed time frames or at all.
Accordingly, readers should not place undue reliance on the
Company's forward-looking statements.
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SOURCE Copper Mountain Mining Corporation