25/03/2024
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- Acquisition Completed
- MMG paid US$1,734,657,000(Over P23 billion) to Cuprous Capital shareholders
- Khoemacau now an asset of MMG Limited
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MMG Limited, the Hong Kong listed base metals miner has completed the acquisition of Khoemacu Copper Mine, a cutting edge world class copper asset in the north west of Botswana.
MMG announced today that it has completed the acquisition of the Khoemacau Mine in Botswana as at 22 March 2024.
"The Acquisition adds a high-quality, transformational growth project to the
Company's portfolio and marks a significant milestone in the Company's history" MMG said in a statement published on the Hon Kong Stock Exchange this morning.
At completion of the acquisition MMG paid to the Sellers the Aggregate Consideration of approximately US$1,734,657,000,(over P23 billion) which amount is subject to possible adjustments post-Completion.
In addition to the payment of the Aggregate Consideration, in accordance with the Agreement, MMG advanced an aggregate amount of approximately US$348,580,000, ( over P4.5 billion) being the Aggregate Debt Settlement Amount, to settle certain debt balances of the Target Group ( Cuprous Capital/Khoemacau)
On 21 November 2023 Khoemacau announced that the shareholders of its parent company[Cuprous Capital/Khoemacau] have reached an agreement to sell 100% of their interests to MMG Limited.
MMG is a global resources company that mines, explores and develops copper and other base metals projects on four continents, and is headquartered in Melbourne, Australia .
MMGβs 68% shareholder is China Minmetals Corporation, Chinaβs largest metals and minerals group owned by the Government of the People's Republic of China.
On 22 December 2023, Khoemacau Copper Mining (Pty) Ltd received the approval from the Minister of Minerals and Energy of Botswana in respect of the transfer of a controlling interest in the Project Licenses and Prospecting Licenses associated with the Khoemacau Copper Mine, brought about by the Acquisition.
Botswana Competition & Consumer
Authority (CCA) on the 29 January 2024 notified the market that it has given green light tothe takeover of Khoemacau Copper Miningby MMG Limited.
In a merger decision to the market dated 29 January 2024 the authority said after all the necessary assessments it is all systems go from their end.
The Competition Authority said it has established that the structure of the relevant market is not expected to significantly change upon implementation of the proposed merger as the proposed transaction is not likely to result in a substantial lessening of competition, nor endanger the continuity of service in the market of mining of copper and silver ores and the production, and sale or supply of copper concentrate in Botswana.
Furthermore, CCA said the proposed merger will not have any negative effect on public interest matters inBotswana as per the provisions of section 52(2) of the Competition Act 2018.
Earlier this month Minister of Minerals & Energy Lefoko Maxwell Moagi told parliament that his Ministry was supporting the Khoemacau acquisition by MMG Limited because not only is the company acquiring the existing operation but also committing to the expansion program that will cost over $700 million to double production, create more jobs for Batswana and pay more taxes and royalties to Government.
