Kazakhstan's CAML takes over Macedonian Lynx in $402.5mn mining deal

Kazakhstan's CAML takes over Macedonian Lynx in $402.5mn mining deal
By bne IntelliNews September 22, 2017

Kazakhstan-based copper producer Central Asia Metals (CAML) said on September 22 it has conditionally agreed to acquire a 100% interest in Bermuda-based Lynx Resources Limited, the owner of the SASA zinc-lead mine in Macedonia, for $402.5mn.

The transaction will enable CAML to expand and diversify its operations and to generate positive cash flows. SASA, located in northeastern Macedonia near the Bulgarian border, is a low cost operation with a strong operating track record and a reserve base supporting production until at least 2032.

CAML will buy the Macedonian mine from Orion Co-Investments and Fusion Capital, owners of Lynx, through a combination of debt and equity financing, CAML said.

Debt financing relates to $120mn senior debt facility with Traxys and roll over of an estimated $67mn of existing Lynx net debt.

Equity financing is about $153.5mn in CAML ordinary shares via an accelerated book build expected to be launched shortly and $50mn in CAML ordinary shares to Orion via an equity subscription.

“Transaction is an exceptional opportunity for CAML to acquire a high quality asset which complements our existing business. The combination of CAML and Lynx creates an AIM listed, diversified, base metals producer with low cost, long life operations which are expected to generate positive cash flows throughout the commodity cycle,” CAML’s executive chairman, Nick Clarke, said.

In 2016, SASA produced 783,000 tonnes of ore which generated 22,515 tonnes of zinc in concentrate and 28,955 tonnes of lead in concentrate.

The transaction will be a reverse takeover and should be approved by the company’s shareholders on October 11.

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