Glencore to sell Australian copper mine to SPAC for $1.1 billion

(Reuters) – Glencore said on Wednesday that blank-check firm Metal Acquisition Corp (MAC) agreed to an amended agreement to buy the global miner’s Cobar copper mine in Australia in a deal valued at $1.1 billion.

Glencore said the terms include Glencore receiving $1.1 billion, as originally agreed in a March deal, but with amended payment terms of $775 million in cash and up to $100 million common equity, besides other payments.

Glencore also has the right to appoint one director to MAC’s board for each 10% interest it holds in the U.S.-listed special purpose acquisition company (SPAC) from time to time, MAC said in a statement overnight.

SPACs are shell companies that raise money in an initial public offering and put it in a trust for the purpose of merging with a private company and taking it public.

MAC said it would need to raise at least $125 million to fund the cash component of the deal, which is expected to close in the first quarter of 2023.

(Reporting by Yadarisa Shabong; Editing by Savio D’Souza)