One of the largest copper producers in Australia will officially acquiore a fellow producer, after months of slowly acquiring more and more interest.
OZ Minerals has announced that it has a relevant interest in Avanco of more than 90%, which means the company will now “compulsorily acquire” all of the remaining shares and acquire Avanco entirely.
This represents a major milestone in the acquisition, which was first announced back in MArch 2018.
OZ Minerals announced its intent to acquire the emerging copper producer Avanco Resources in a deal worth A$418million, with the goal of expanding its operations into South America.
Avanco Resources has a number of projects in Brazil and had ambitions to become the next mid-tear producer in Australia. Following the acquisition, this opens a new pathway into South America for OZ Minerals.
OZ Minerals Chief Executive Officer, Andrew Cole, said the acquisition of Avanco had now reached a significant milestone.
“The combination of OZ Minerals and Avanco provides an operating asset in Antas, and importantly it adds to our organic growth pipeline with its development and exploration opportunities in the Carajás and Gurupi provinces in Brazil.
“Our integration team and other key personnel are now in Brazil working with the Avanco team to optimise the assets and unlock the potential of the impressive project pipeline.
“We welcome Avanco shareholders to OZ Minerals and look forward to them sharing in the potential offered by the combination of the Avanco and OZ Minerals assets.”
Avanco identified the Carajás, one of the world’s richest IOCG mineral provinces, in the north of Brazil as the ideal place to build a mid-tier copper company. The region is host to high-grade undeveloped greenfield copper deposits that offer real development potential