trending Market Intelligence /marketintelligence/en/news-insights/trending/48AfbKB8L3e3FgjTuiCu_g2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Newcrest to acquire 70% of Imperial's Red Chris mine in US$806.5M deal

COVID19 Mining Impacts Mining Projects With At Risk Production

Mining Insights Newsletter June 2020

A Decade of Underperformance for Gold Discoveries

State of the Market: Mining Q1-2020

Newcrest to acquire 70% of Imperial's Red Chris mine in US$806.5M deal

Newcrest Mining Ltd. entered into a US$806.5 million deal to acquire a 70% interest in Imperial Metals Corp.'s Red Chris copper-gold mine and surrounding tenements in British Columbia.

Imperial will retain the remaining 30% interest in the mine. The companies are targeting to close the deal by Aug. 15.

Upon deal closing, the companies' wholly owned subsidiaries will form an unincorporated joint venture, with Newcrest acting as the operator. Each party will contribute exploration and development expenditure according to its participating interest, while transfers of the joint venture interests will be subject to rights of first refusal.

Newcrest came to the decision following an intensive due diligence process, and has identified opportunities to expand Red Chris' resources along strike and at depth in areas that have been subject to limited drilling.

Red Chris is a copper and gold porphyry orebody with an operating open-pit mine and resources of about 20 million ounces of gold and 13 billion pounds of copper. The mine has the potential to become a tier-one asset through block caving, Newcrest noted in a March 11 release.

The property comprises 23,142 hectares of land with 77 mineral tenures. Newcrest believes it can unlock significant value from the deposit by applying its technical expertise in block caving, operations optimization and selective processing.

In February, Newcrest CEO Sandeep Biswas said the company would seek a potential acquisition if it delivers right value for investors, adding that the miner would prefer to increase its exposure through the purchase of assets rather than whole companies, Reuters reported.

Newcrest plans to fund the proposed acquisition from cash and committed undrawn bank facilities, together amounting to over US$3 billion as at the end of 2018.

Imperial said March 10 that it plans to use the proceeds to repay certain existing debt obligations in accordance with their maturity dates, with remaining funds to be used for working capital purposes.

Reuters reported in December 2018 that Imperial engaged Bank of Montreal to expedite a formal restructuring process that may include a US$1 billion company sale.