CAML gains approval for $402.5m acquisition of Lynx Resources

Central Asia Metals has received approval from the Macedonian Competition Commission for its acquisition of Lynx Resources from Orion Co-Investments and Fusion Capital for $402.5m.

The agreement relating to the acquisition of a 100% interest in Lynx was reached in September.

Lynx owns the SASA zinc-lead mine, which is located near the town of Makedonska Kamenica in the north-east part of Macedonia’s Osogovo Mountain Massif.

The acquisition is expected to enable commodity, geographic and operational diversification, accompanied by positive cash-flows throughout the commodity cycle.

At the time of signing the agreement, CAML executive chairman Nick Clarke said: “We believe that this 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.

“The transaction is projected to be both earnings and cash-flow per share accretive in the first full year, which is in line with our business development strategy of pursuing value accretive acquisitions in the base metals sector that enable CAML to continue paying one of the leading dividends in the sector.”

With a life of mine of around 20 years, the mine is said to have a throughput of 780,000tpa ore, production of 23,000t zinc in concentrate, 30,000t in lead, and 400,000oz silver in lead concentrate.

The acquisition is set to be completed in the next few days.

Source: mining-technology