MMG Ltd. said Dec. 30 that it conditionally agreed to sell the Golden Grove polymetallic project in Western Australia to EMR Golden Grove Holdings Pty. Ltd. for US$210 million.
The company launched the sale process in August due to approaches from potential buyers. The decision to put Golden Grove up for sale was also influenced by the company's decision to develop the polymetallic Dugald River project in Queensland, Australia.
The parties also agreed that MMG Australia Ltd. will continue to provide services to Golden Grove for an agreed period following completion.
According to the release, a deposit of US$15 million has been paid with the balance due on completion, subject to satisfaction of conditions precedent including approval by the MMG board, which will make a decision by Jan. 31, 2017.
The transaction is expected to close by Feb. 28, 2017, or 12 business days following satisfaction of all conditions. If the sale is completed, EMR will take on the economic risk and benefits of the project from Jan. 1, 2017, the company noted.
MMG tapped Goldman Sachs as a financial adviser while Clayton Utz would advise on legal matters related to the transaction.