Metals Acquisition Corp. (MTAL) Announces $114M PIPE for CSA Copper Mine Deal
by Nicholas Alan Clayton on 2023-04-17 at 9:26am

Metals Acquisition Corp. (NYSE:MTAL) has continued to add to the committed financing for its combination with Glencore’s (LON:GLEN) CSA Copper Mine, announcing this morning that it has executed $112 million in outside PIPE agreements.

The PIPE is priced at $10 per share and is anchored by $112 million from global resource funds. Metals’ management has subscribed for $1.8 million under the same terms.

Metals CEO  Michael James McMullen is taking the bulk of this on with a $1.5 million investment while CFO Marthinus Crouse has subscribed for $250,000 and Director Patrice Ellen Merrin for $50,000.

The $1.1 billion transaction was originally announced in March 2022 with about $42 million in PIPE funding in $550 million in various kinds of debt. But, as both market financing conditions and copper prices changed in the intervening year, the parties have overhauled the consideration across five amendments.

The bulk of the cash to be used for taking over nearly all of equity in the CSA Copper Mine is now to come from a $775 million syndicated lending facility funded by Citibank (NYSE:C), Bank of Montreal (NYSE:BMO), Harris Bank, Bank of Nova Scotia (TSX:BNS) and the National Bank of Canada (TSX:NA).

Metals has aimed to raise a $125 million PIPE and the lending facility may be expanded if it falls short, but it may not be done in announcing additional subscribers. The SPAC still has until August 2 to complete the deal under its initial transaction deadline.

Glencore’s CSA copper and silver mine is among the Australia’s largest, having exploited about 41,000 metric tons of copper in 2021.

 

Recent Posts
by Kristi Marvin on 2025-02-08 at 10:02am

Terms Tracker for the Week Ending February 7, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. This past week saw one new SPAC IPO price, bringing the year-to-date total to nine. K&F Growth Acquisition Corp. II successfully debuted and managed to...

by Nicholas Alan Clayton on 2025-02-07 at 2:43pm

Retail enthusiasm has been a lifeblood of many SPAC transactions through to the combined companies’ ongoing lives as public companies, and several have taken to buying up Bitcoin as a way of keeping sometimes fickle retail investors engaged. Enterprise software MicroStrategy (NASDAQ:MSTR) pioneered this tactic before spot Bitcoin ETFs were available to the general public....

by Nicholas Alan Clayton on 2025-02-07 at 8:23am

At the SPAC of Dawn  The markets may still be figuring out their way in careening the early decisions of the new presidential administration, but one de-SPAC decided to cash in on at least one of them yesterday. Rare earth miner Critical Metals (NASDAQ:CRML) raised $22.5 million in a private placement taking advantage of a...

by Nicholas Alan Clayton on 2025-02-06 at 8:15am

At the SPAC of Dawn  The market may have sighed in relief with the postponement of tariffs, but they may not have gone too far into the background as the US also reported a record high $98.4 billion trade deficit for December yesterday, which came in more than $2 billion deeper than expected. More signals...

by Nicholas Alan Clayton on 2025-02-05 at 8:23am

At the SPAC of Dawn  Commentators may still spar over the level of positive impact SPACs have had in some sectors, but Peter Beck, CEO of Rocket Lab (NASDAQ:RKLB), believes the vehicles have been particularly positive for the space industry. Although he described the period as a “crazy, crazy time” when speaking at the Smallsat...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved