Squire Patton Boggs Acts for Metals Acquisition Corp. on Billion Dollar Acquisition of CSA Copper Mine

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Squire Patton Boggs AU has advised US-based, NYSE-listed ‘SPAC’ (special purpose acquisition company), Metals Acquisition Corporation (NYSE:MTAL.U) (MAC) in relation to its acquisition of the CSA Copper Mine (the CSA Mine) for total consideration of US$1.1 billion (consisting of US$1.05 billion cash and US$50 million scrip consideration in MAC plus a 1.5% net smelter royalty on copper produced from the CSA Mine).

On 17 March 2022, MAC’s wholly owned subsidiary Metals Acquisition Corp. (Australia) Pty Ltd entered into a definitive sale and purchase agreement with Glencore Operations Australia Pty Limited, a wholly-owned subsidiary of Glencore International AG (Glencore), to purchase 100% of the issued share capital of Cobar Management Pty Ltd, the owner and operator of the CSA Mine.

Metals Acquisition Corp. is a newly formed ‘blank cheque’ SPAC focused on green-economy metals and mining businesses in high quality, stable jurisdictions. MAC’s experienced and expert management team, led by Mick McMullen (CEO), has an extensive track record acting as commodity producers, processors and traders.

The CSA Mine is an established, high-grade producing copper mine that is expected to produce more than 40kt of copper in 2022 with an estimated current mine life of over 15 years. CSA will be a cornerstone asset for MAC as it looks to fulfil its stakeholder mandate and establish itself as a high-quality, mid-tier base metals producer. MAC intends to utilise its management team’s operational experience to identify and realise the full potential of the asset while playing a key role moving forward in the current global energy transition.

Chris Rosario, a corporate partner in the firm’s Perth office, is leading the team acting for MAC. He is supported by senior consultant Neil Fearis, lead associate Connor McClymont and associate Josh Walsh, with significance assistance being provided by the firm’s broader tax, labour & employment, real estate, finance and tax practices. MAC is also advised by Paul Hastings as US legal counsel, Maples Group as Cayman legal counsel and Citi as financial advisor. King & Wood Mallesons and Weil Gotshal & Manges are providing legal advice to Glencore on the transaction.

Mr Rosario said: “We were pleased to advise MAC and its world class team on the acquisition of one of Australia’s most significant mining assets. We look forward to working with Mick and the MAC team on bedding down their acquisition and on realising future opportunities.”

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