The latest in the Australian dealspace has seen Glencore sell future output from a copper and gold mine to Australia’s Evolution Mining, while startup Ignition Wealth has secured a $750k seed investment.
Evolution Mining acquires future mine output
Glencore has agreed to sell future output of a gold and copper output to Evolution Mining Ltd in a deal worth AU$880 million ($670 million). This transaction is part of Glencore’s effort to repay its debt.
Details of the deal mention Evolution Mining, Australia’s second-largest gold producer, are to receive 100 per cent of future gold and 30 per cent of copper and silver production from the Ernest Henry mine in Queensland. An additional 30 per cent interest will be taken by Evolution on the mine, while Glencore continues to manage operational activities.
Glencore has resorted to selling future output, in order to clear its debt burden. The company sold a share of its future silver output to Silver Wheaton Corp in November 2015 for terms that included a A$900 million ($685 million) cash payment.
Evolution has announced a AU $901 million ($686 million) capital raising to fund the deal. AU $401 million ($305 million) by issuing new shares, currently valued at AU$2.43 a share on the ASX. The remaining AU $500 million ($381 million) are to be raised through a syndicated loan.
The company’s output in gold is set to raise an estimated 800 000 ounce according to officials.The addition of low-cost gold production from the mine is said to improve the quality of Evolution’s portfolio according to executive chairman Jake Klein.
Ignition Wealth gets Seed funding
Sydney-based startup Ignition Wealth has concluded an A$1 million ($750,000) seed investment from financial planning pioneer and magnate Barry Lambert, who now owns a minority stake in the fintech venture.
This investment now sees the firm raising an aggregate of A$4 million ($3.05 million) in equity financing that will be using to quickly expand and grow out its current product offering.
As a result of this investment, Lambert has acquired a minority stake in the fintech company. The chairman of the cloud-based administrator for self-managed super funds (SMSFs), Class Super is also the founder of Count, a network of financial planners created in 1980 and sold in 2011 to Commonwealth Bank for a consideration of A$375 million ($286 million).
Ignition First, founded in 2008 by Mark Fordree, aims to provide online investment and superannuation (i.e. the regular payments made into a fund by an employee towards a future pension) advice solutions for the Australian financial services market.
Its proposition is that of a platform that uses an algorithm to tailor and establish a regularly updated portfolio for its users. Earlier this year, the startup became the first digital financial advisor to be given an Australian licence. The Ignition Wealth team has doubled in size in the last year, according to Fordree.