Pasminco Limited has exited the last of its New South Wales mining operations with the completion of the sale of its lead/zinc Elura Mine, and its shiploader at Newcastle, to Consolidated Broken Hill Limited, on Friday 12 September.
CBH will pay Pasminco a total of $22.2 million for the Elura Mine and the shiploader. The payments comprise: a $2.2 million payment which was made on completion, a further $3.2 million payable nine months after completion and up to $5 million in the form of price linked payments which will commence one year after completion and are payable during a period of up to 4 years. CBH will also assume approximately $11.8 million in financial liabilities including all clean up and rehabilitation in respect of the Elura Mine.
Pasminco and CBH have executed concentrate supply agreements for supply of lead and zinc concentrate from the Elura Mine to Pasminco’s Hobart and Port Pirie smelters. The parties have also entered arrangements for supply of waste product from Pasminco’s Cockle Creek smelter to the Elura Mine to be used by CBH as fill at the mine.
The sale is expected to have the effect of extending the life of the Elura Mine to 2012 or beyond.
Pasminco sold its other New South Wales mine, the historic Broken Hill mine, to Perth based Perilya Limited in 2002.
Blake Dawson Waldron advised Pasminco on the sale of both Broken Hill and Elura mines.
Lead partners on the Elura Mine and Newcastle shiploader transactions were Anne Mustow & Gail Owen. Team members included Andrea Featherstone, David Williamson, Doug Scobie, Jennifer Preston, Kate Mullins, Jock O’Shea and Jamii Quoc.