Copper, Gold
SOLD TO XSTRATA 2011
The CCP includes six deposits located in two different geological settings. Four deposits in the Mount Margaret area (E1 North, South, East and Central) and two at Monakoff (Monakoff and Monakoff East) with resources delineated for the project totalling 52Mt at 0.77% copper and 0.23g/t gold. The centre of gravity for the project was the E1 Camp located 8km east of the existing Ernest Henry Mine owned by Xstrata, in a region well serviced by infrastructure.
Sale of the CCP to Xstrata
On 20 April 2011 Exco announced that it had signed an Asset Purchase Agreement (APA), pursuant to which Exco agreed to sell certain CCP tenements1 to Mount Margaret Mining Pty Ltd (Xstrata), a subsidiary of Xstrata Plc, for $175 million.
The transaction was subject to conditions precedent, including Exco shareholders approving the transaction, Xstrata receiving FIRB approval, and all necessary Queensland government approvals, the assignment of certain third party agreements that are ancillary to the tenement package comprised within the CCP on terms acceptable to Xstrata, acting reasonably, and the eligible directors of Exco unanimously recommending that Exco shareholders approve the proposal.
At the general meeting on 9 June 2011 the resolution for approval of the sale was carried on a show of hands following overwhelming proxy support. Following satisfaction of the remaining conditions precedent, final formalities were completed on 30 June 2011 and Exco received the funds for the sale.
Exco intends to return $135 million of the after-tax cash retained in Exco to its shareholders by 31 October 2011 (or under reasonable circumstances where a delay is experienced, as soon as is practicable).
1Comprising the E1, Monakoff and Monakoff East deposits and ML 90157, ML 7122, MLA 90198, MLA 90199, MLA 90200 and MLA 90201 as well as EPM 7085, EPM 8609, EPM 14201 and EPMA 18038.