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Independence Group selling Jaguar zinc ops to CopperChem for A$73.2M

Independence Group NL signed a deal to sell its Jaguar zinc operation in Western Australia to CopperChem Ltd., a unit of Washington H. Soul Pattinson & Co. Ltd., for A$73.2 million.

The company will pay A$25 million on completion of the transaction, with the remaining A$48.2 million to be paid in three equal installments annually on deal anniversaries, according to a May 25 release.

"Following a review of the value enhancement opportunities at Jaguar, we have decided that the asset does not fit our strategic metrics and accordingly we have made the decision to divest the asset through the sale to CopperChem," said Peter Bradford, Independence Group's CEO and managing director.

The move will enable the group to focus on growth of its key assets Nova and Tropicana and the execution of its exploration strategy, Bradford added.

The company said that it will assist CopperChem throughout the transition process to ensure minimal disruption to production as well as to provide support to employees and contractors. All existing community programs and investments will be maintained to the end of their contractual periods, it noted.

Independence Group acquired the Jaguar operation, comprising the Jaguar and Bentley underground mines, from Jabiru Metals in 2011. The Jaguar mine was put on care and maintenance in 2012, and since then all ore has been sourced from the Bentley mine and processed through the Jaguar concentrator to produce zinc and copper concentrates.

Euroz Securities Ltd. and Herbert Smith Freehills advised Independence Group on the sale, while Pitt Capital Partners and McCullough Robertson were CopperChem's advisers.

The transaction is expected to close May 31.