The Hermosa zinc-lead-silver project. Image: Arizona Mining.
BY CAMERON DRUMMOND
SOUTH32 will pay $C110 million ($107m) for a 15 per cent stake in Canadian multi-commodity miner Arizona Mining.
Under the agreement, South32 will acquire 45,000,000 Arizona Mining shares at $C2.45 per share.
South32 also has the right to nominate a director to the board of Arizona Mining providing it maintains a minimum 12.5 per cent interest.
Arizona Mining is focused on its Hermosa zinc-lead-silver project, which includes the Taylor deposit, located in Santa Cruz County, Arizona.
South32 chief executive Graham Kerr said Hermosa was a highly prospective project and was another step in the company’s strategy to identify opportunities outside of its current portfolio.
“We look forward to working with Arizona Mining to progress this project through the feasibility and permitting stage to unlock the Hermosa Project’s full potential.”