Vedanta Resources Sale of Assets
McCullough Robertson’s Corporate M&A team, principally through Partner, Damien Clarke and Senior Associate, Meg Morgan, have acted for global mining conglomerate, Vedanta Resources, on the intended sale of Copper Mines of Tasmania, the owner of the Mt Lyell Copper Mine (Mt Lyell), to ASX-listed New Century Resources (NCZ).
Acquired by Vedanta in 1999, Mt Lyell is one of the most significant copper mines in Australian history, having operated for over 120 years. Currently in care and maintenance, NCZ is proposing to undertake exploration works and contribute to mine and project costs over the next two years, before deciding whether or not to complete the acquisition and restart operations.
If the transaction proceeds to completion, the consideration for the sale will involve various cash payments totalling ~$43 million, and a substantial royalty stream of up to ~$300 million based on certain thresholds.
The McCullough Robertson team prepared and negotiated the transaction documentation, and completed the vendor due diligence. Senior Associate, Meg Morgan, comments that “this was a relatively novel deal, which required the bespoke solutions and the creative approach that McCullough Robertson is known for.”
Partner, Damien Clarke, said that “this deal highlights the whole-of-project capability of our leading Resources & Renewables Industry Group, and particularly within Australia’s growing minerals and metals sector. We are delighted to have supported Vedanta on this proposed divestment, and look forward to seeing what the next two years brings for Mt Lyell.”
Transaction support: Damien Clarke, Meg Morgan, Laura Sclavos, Michael Horrocks
Vendor due diligence: Strati Pantges, Claire Meiklejohn, Nathan Roberts, David Wilton, Deekshita Ardham and Beliz Ozturk