On June 17, Australia's OZ Minerals Ltd, the world's second biggest zinc miner, announced that it has completed its asset sales deal with Chinese state-owned metal and mineral company China Minmetals Corp. (Minmetals) and repaid all of its bank loan facilities.
According to the miner, the settlement adjustments mean the total proceeds of the deal amounted to US$1.35 billion, compared to the previously stated headline value of the deal of US$11.39 billion.
After repaying its banks, OZ will have a cash balance of more than US$575 million.
OZ still has US$105 million of convertible bonds and fully secured bank letters of credit of approximately AU$20 million, which principally meets the mining regulatory obligations.
Commenting on the transaction, OZ Minerals chairman Barry Cusack said, "We have now retired all of our bank loan facilities, which has been a critical issue for the company for more than six months."
"OZ Minerals is now smaller and more focused in terms of its operations but is in a significantly enhanced financial position. We have the new Prominent Hill copper-gold operation in South Australia, a rejuvenated balance sheet with a substantial cash balance and we are now also beginning to accrue revenue from the Prominent Hill mine," Mr. Cusack stated.
Mr. Cusack added, "OZ Minerals' immediate focus will be on restarting our exploration projects and development studies which were suspended last year."
"We have a very experienced and capable group of people who are looking forward to making the most of the opportunity we now have," the OZ Minerals chairman concluded.