- Copper Mountain Mining Corporation (CMMC) received bondholder approval related to a land package sale
- The company agreed to pay a one-time amendment fee of 0.25 per cent of the outstanding bonds to the holders
- It will also make an offer to buyback bonds for US$87 million at a price of 103.00 per cent of the bonds
- The closing of the land package transaction is expected to close no later than early 2023
- Copper Mountain Mining Corporation(CMMC) is down 2.19 per cent and is trading at $1.56 per share as of 12:57 p.m. EST
Copper Mountain Mining Corporation (CMMC) has received bondholder approval related to the land package sale with Harmony Gold Mining Company Limited.
Alongside securing the bondholder approval, Copper Mountain has agreed to pay a one-time amendment fee of 0.25 per cent of the outstanding bonds to the holders. It will also make an offer to buy back bonds for US$87 million at a price of 103.00 per cent of the bonds.
A portion of the cash consideration will fund the buyback offer proceeds Copper Mountain expects to receive from Harmony on the close of their transaction. It will otherwise rely on cash flows generated from its copper mine and the land package transaction to meet future cash commitments.
Additionally, all of the net cash proceeds from any other consideration from Harmony before the maturity date of the bonds, happening on April 9, 2026, will be applied to either make further offers to buyback bonds or redeem the bonds.
The closing of the land package transaction is still subject to certain customary conditions but is expected to close no later than the first quarter of 2023.
Copper Mountain Mining Corporation (CMMC) is down 2.19 per cent and is trading at $1.56 per share as of 12:57 p.m. EST.