London-listed ACG Acquisition by Artem Volynets will acquire a nickel sulphide mine in Santa Rita and a copper mine in Serrota through a merger with Brazilian private investment firm Appian Capital Advisory, which owns the deposits . The amount of the agreement is one billion dollars.
The former boss of En+ Group (Oleg Deripaska’s parent company Rusal) and a “veteran of Russian metallurgy,” as Bloomberg calls Volynets, brought in global mining company Glencore and a host of auto companies to back the deal.
Like Glencore, ACG is investing $100 million in ACG’s equity, including electric car maker Stellantis (Chrysler, FIAT and Peugeot brands), and PowerCo (Volkswagen’s battery division) will make an upfront payment for nickel: the same $100 million. The mining investment fund La Mancha Resource Capital will also join.
The future owner of the mines assumes that nickel will be in demand not only at the companies of Glencore, PowerCo and Stellantis, but also at other car manufacturers.
“These high-quality mines will enable ACG to become the preferred supplier of sustainable metals to Western electric vehicle automakers,” Volynets said.
Being a SPAC (Special Purpose Acquisition Company, originally intending to merge with a non-public company in order for the latter to go public), ACG Acquisition will change its name after the transaction to become ACG Electric Metals.
ACG Acquisition shares against the background of the news on the evening of June 12 grew on the London Stock Exchange by 6.37%.
Author:
Ekaterina Alipova
Source: RB
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