SOUTH32 said it had completed the $1.3bn acquisition of Arizona Mining, a zinc exploration company that is developing the Taylor deposit, located in a prospective area called Hermosa south, near Tucson.
The transaction, completed through a plan of arrangement, involved the payment of C$6.20 per share to Arizona Mining shareholders. South32 had previously bought a 17% stake in 2017, later increased to 19.9%.
“The acquisition of Arizona Mining adds to our portfolio one of the most exciting base metal projects in the industry,” said Graham Kerr, CEO of South32 in a statement.
Pre-production capital of some $519m has been estimated for a zinc mine on the Taylor deposit. Initial production of some eight years has been forecast. However, Arizona Mining has scoped for total capital expenditure of $1.24bn over the life of mine of 29 years.
“The project will rank as the world’s fourth largest zinc producer and just behind Mt Isa mines,” said UK-based investment firm, SP Angel in a note at the time of South32’s first announcement about the takeover on June 18. SP Angel titled that note: “M&A takes off in mining …”.
