Metals Acquisition in a regulatory filing said it issued a note to borrow up to $300,000 from its sponsor to cover expenses related to its proposed purchase of the CAS Copper Mine in Australia.
The SPAC intends to acquire the copper mine for $1.1 billion. The purchase price implies a 4.5x multiple of 2022 EBITDA.
The Australian Foreign Investment Review Board approved the deal last month.
The purchase price and $50 million of required working capital and transaction costs is expected to be funded through a combination of $465 million of debt facilities and silver streaming agreements, which include:
$375 million underwritten senior secured debt facility from Citibank and Commonwealth Bank of Atralia, comprising a $350 million acquisition term loan and $25 million revolving credit facility for working capital;
$90 million silver streaming agreement with a subsidiary of Osisko Gold Royalties Ltd
$175 million mezzanine convertible debt facility led by Sprott Resource Lending and investors;
$41.75 million equity, including $25 million from Sprott, $15 million from OGR and $1.75 million from MAC CEO Mick McMullen and CFO Jaco Crouse;
$50 million of common equity paid to Glencore (included in the purchase price); and
$418.25 million to be sourced from a combination of $265 million cash in trust (subject to share redemptions), new equity and alternative sources. Read more.
