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CST Group selling Lady Annie copper mine in Australia

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CST Group selling Lady Annie copper mine in Australia

CST Group Ltd. agreed to sell its Lady Annie copper mine in Queensland, Australia, and a related loan for about A$23 million.

The company said March 14 that operations at Lady Annie have been downscaled due to depleted copper reserves.

CST holds Lady Annie through indirect subsidiary CST Minerals Australia Pty. Ltd., which Kombi Mining Pty. Ltd. agreed to acquire for A$1 per share.

As of Feb. 28, the property has an outstanding loan of about A$262.5 million, including interest, which Bentley Resources Pte. Ltd. agreed to shoulder.

CST said March 14 that the sale will allow the company to look for other high-quality mining opportunities while improving its liquidity and working capital. It expects to record a gain of about A$15 million from the disposal.