The company will execute the transaction through its indirect wholly-owned subsidiary MMG Africa Ventures.
The company will fund the acquisition through shareholder loans and debt financing and expects the deal to be “immediately accretive.”
Through the transaction, MMG will acquire the entire issued share capital of Khoemacau parent company Cuprous Capital, which is majority-owned by Cupric Canyon Capital.
Cupric Canyon Capital was the lead seller in the deal, along with Ferreira Family Trust, Resource Capital Fund VII and Missouri Local Government Employees’ Retirement System.
The Khoemacau copper mine has the 10th largest copper resource in Africa (by total copper content) with a concession area of 4,040 square kilometres.
The mine is located in the Kalahari copper belt in northwestern Botswana, with an annual output of nearly 60,000 tons of copper and nearly 2 million ounces of silver.
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The mine has an initial life of 27 years and is said to have significant expansion potential beyond its existing mineral resource base of 450 tonnes grading 1.4% copper and 18g/t silver.
The concentrator throughput is expected to average 3.6 million tonnes per year between 2024 and 2026, before gradually ramping up in 2027 and ’28 and increasing from 8.1 tonnes per year to 8.5 tonnes per year by the end of mine life in 2029. /Year.
Production could average between 50 and 65 kilotonnes per year (ktpa) from 2024 to 2026 before scaling up in 2027 and 2028.
Ultimately, annual production could reach 145,000 tonnes from 2029 until the end of the mine’s scheduled life.
MMG Chairman Ji Qing said “Khoemacau has significant expansion potential and we look forward to working with the existing team to make Khoemacau’s potential a reality.”
The deal, which is expected to close in the first half of next year, is still subject to approval.
In September, Reuters reported that Impala Platinum, Exxaro Resources and Sibanye Stillwater were considering taking over the mine.
