Confirming previous reports, Sandfire Resources NL agreed to acquire Talisman Mining Ltd.'s 30% interest in the Springfield copper-gold joint venture in Western Australia.
The company will purchase Talisman A Pty. Ltd., which holds Talisman's stake in the Monty mine and the joint venture, for A$72.3 million cash, according to a June 8 news release.
Sandfire will also acquire an existing 2.25% gross revenue royalty over Talisman's 30% share of the Monty mine, capped at the contained copper-gold metal in the current resource estimate.
Talisman will receive an uncapped and perpetual 1.0% net smelter return royalty on all contained copper and gold processing from the Springfield joint venture over the respective contained metal levels in the current Monty mine plan.
Talisman's board is unanimously in favor of the transaction, and the company's largest shareholder, Kerry Harmanis, also intends to support the proposed transaction.
A share sale and royalty agreement is expected by June 30.
