Nexa Resources Announces Closing Transaction of Chapi Mine Sale to Quilla Resources
Nexa Resources (NYSE: NEXA) has completed the sale of Minera Pampa de Cobre S.A.C. (MPC), which owns the Chapi copper mine, to Quilla Resources Peru S.A.C. The transaction involved the transfer of all shares, rights, titles, and interests in Chapi to Quilla, following the fulfillment of all closing conditions. This sale completion follows a previously disclosed agreement between the parties.
Nexa Resources (NYSE: NEXA) ha completato la vendita di Minera Pampa de Cobre S.A.C. (MPC), che possiede la miniera di rame Chapi, a Quilla Resources Peru S.A.C. La transazione ha coinvolto il trasferimento di tutte le azioni, diritti, titoli e interessi in Chapi a Quilla, a seguito del soddisfacimento di tutte le condizioni di chiusura. Il completamento di questa vendita segue un accordo precedentemente comunicato tra le parti.
Nexa Resources (NYSE: NEXA) ha completado la venta de Minera Pampa de Cobre S.A.C. (MPC), que posee la mina de cobre Chapi, a Quilla Resources Peru S.A.C. La transacción implicó la transferencia de todas las acciones, derechos, títulos e intereses en Chapi a Quilla, tras el cumplimiento de todas las condiciones de cierre. La finalización de esta venta sigue a un acuerdo comunicado previamente entre las partes.
Nexa Resources (NYSE: NEXA)는 판매를 완료했습니다 Minera Pampa de Cobre S.A.C. (MPC)로, 차피 구리 광산을 소유하고 있으며, Quilla Resources Peru S.A.C.에 매각했습니다. 이번 거래는 Chapi에 대한 모든 주식, 권리, 제목 및 이해관계의 이전을 포함하며, 모든 마감 조건이 충족된 후 이루어졌습니다. 이 판매 완료는 당사자 간에 이전에 공개된 합의에 따른 것입니다.
Nexa Resources (NYSE: NEXA) a complété la vente de Minera Pampa de Cobre S.A.C. (MPC), qui possède la mine de cuivre Chapi, à Quilla Resources Peru S.A.C. La transaction a consisté en le transfert de toutes les actions, droits, titres et intérêts sur Chapi à Quilla, suite au respect de toutes les conditions de clôture. Cette finalisation de vente s'inscrit dans le cadre d'un accord précédemment divulgué entre les parties.
Nexa Resources (NYSE: NEXA) hat den Verkauf von Minera Pampa de Cobre S.A.C. (MPC) abgeschlossen, welches die Kupfermine Chapi besitzt, an Quilla Resources Peru S.A.C. Die Transaktion beinhaltete die Übertragung aller Aktien, Rechte, Titel und Interessen an Chapi an Quilla, nach Erfüllung aller Abschlussbedingungen. Der Abschluss dieses Verkaufs folgt einer zuvor bekanntgegebenen Vereinbarung zwischen den Parteien.
- Complete divestment of non-core asset potentially improving company's focus and resource allocation
- Reduction in copper mining assets and potential revenue stream
Insights
The sale of Chapi mine marks a strategic divestment for Nexa Resources, aligning with industry-wide portfolio optimization trends. While financial terms weren't disclosed, this transaction should strengthen NEXA's balance sheet and allow reallocation of capital to more profitable ventures. Chapi, a copper mine, has been non-operational, representing a cash drain through maintenance costs. The sale eliminates these carrying costs and could positively impact NEXA's operating margins.
For retail investors, this development signals NEXA's focus on streamlining operations and improving capital allocation. The removal of a non-producing asset from the books typically enhances company valuations, though the actual impact will depend on the undisclosed transaction value. This move could potentially lead to improved financial metrics in upcoming quarters, particularly in terms of reduced operational expenses and enhanced return on capital employed.
The Chapi copper mine divestment reflects broader industry dynamics where companies are optimizing their portfolios by divesting non-core assets. Quilla Resources' acquisition suggests potential plans to restart operations at Chapi, which could introduce new copper supply to the market. The transaction's timing is strategic, considering current copper market conditions and growing demand from green energy initiatives.
In simpler terms, think of this like selling an old car that's been sitting in the garage costing money in maintenance but not being used. The buyer might fix it up and get it running again, while the seller (Nexa) can use the money for better purposes. This deal removes a financial burden from Nexa's books and could help them focus on their more productive mines.
Luxembourg, Luxembourg--(Newsfile Corp. - December 23, 2024) - Nexa Resources S.A. (NYSE: NEXA) ("Nexa Resources", "Nexa" or the "Company") announces today the completion of the previously disclosed sale (the "Transaction") of
Under the terms of the definitive agreement, Nexa has sold and transferred all shares, rights, titles, and interests in Chapi to Quilla. The Transaction was completed following the fulfillment of all closing conditions.
About Quilla Resources Peru S.A.C.
Quilla Resources Peru S.A.C ("Quilla") is a privately held Peruvian company, which is focused on acquiring, and operating copper focused mining projects in Peru, and the wider region. Quilla intends to restart the Chapi Mine and conduct exploration on the property.
About Nexa
Nexa is a large-scale, low-cost integrated zinc producer with over 65 years of experience developing and operating mining and smelting assets in Latin America. Nexa currently owns and operates five long-life mines, three of which are located in the central Andes region of Peru, and two of which are located in Brazil (one in the state of Minas Gerais and one in the state of Mato Grosso). Nexa also currently owns and operates three smelters, two of which are located in the state of Minas Gerais in Brazil, and one of which is Cajamarquilla, located in Lima, which is the largest smelter in the Americas.
Nexa was among the top five producers of mined zinc globally in 2023 and one of the top five metallic zinc producers worldwide in 2023, according to Wood Mackenzie.
Cautionary Statement on Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to in this news release as "forward-looking statements"). Forward-looking statements contained in this news release may include, but are not limited to, zinc and other metal prices and exchange rate assumptions, projected operating and capital costs, metal or mineral recoveries, head grades, mine life, production rates, and returns; the Company's potential plans; the estimation of the tonnage, grade and content of deposits and the extent of mineral resource and mineral reserve estimates; timing of commencement of production; exploration potential and results; the timing and receipt of necessary permits for future operations; and the impacts of COVID-19 on our operations.
These statements are based on information currently available to the Company and the Company provides no assurance that actual results and future performance and achievements will meet or not differ from the expectations of management or qualified persons. All statements other than statements of historical fact are forward-looking statements. The words "believe," "will," "may," "may have," "would," "estimate," "continues," "anticipates," "intends," "plans," "expects," "budget," "scheduled," "forecasts" and similar words are intended to identify estimates and forward-looking statements. Forward-looking statements are not guarantees and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments may be substantially different from the expectations described in the forward-looking statements for a number of reasons, many of which are not under our control, among them, the activities of our competition, the future global economic situation, weather conditions, market prices and conditions, exchange rates, and operational and financial risks. The unexpected occurrence of one or more of the abovementioned events may significantly change the results of our operations on which we have based our estimates and forward-looking statements. Our estimates and forward-looking statements may also be influenced by, among others, legal, political, environmental, or other risks that could materially affect the potential development of the Project, including risks related to outbreaks of contagious diseases or health crises impacting overall economic activity regionally or globally, as well as risks relating to ongoing or future investigations by local authorities with respect to our business and operations and the conduct of our customers, including the impact to our financial statements regarding the resolution of any such matters.
These forward-looking statements related to future events or future performance and include current estimates, predictions, forecasts, beliefs and statements as to management's expectations with respect to, but not limited to, the business and operations of the Company and mining production, our growth strategy, the impact of applicable laws and regulations, future zinc and other metal prices, smelting sales, capex, expenses related to exploration and project evaluation, estimation of Mineral Reserves and/or Mineral Resources, mine life and our financial liquidity.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable and appropriate by management and qualified persons considering their experience are inherently subject to significant uncertainties and contingencies and may prove to be incorrect. Statements concerning future production costs or volumes are based on numerous assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, full integration of mining and smelting operations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labor disturbances, interruption in transportation or utilities, adverse weather conditions, and that there are no material unanticipated variations in metal prices, exchange rates, or the cost of energy, supplies or transportation, among other assumptions.
Estimates and forward-looking statements refer only to the date when they were made, and we do not undertake any obligation to update or revise any estimate or forward-looking statement due to new information, future events or otherwise, except as required by law. Estimates and forward-looking statements involve risks and uncertainties and do not guarantee future performance, as actual results or developments may be substantially different from the expectations described in the forward-looking statements. Further information concerning risks and uncertainties associated with these forward-looking statements and our business can be found in our public disclosures filed under our profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov).
For further information, please contact:
Investor Relations Team
ir@nexaresources.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234659
FAQ
What assets did Nexa Resources (NEXA) sell to Quilla Resources in December 2024?
When did Nexa Resources complete the Chapi mine sale transaction?
What was included in the Nexa Resources Chapi mine sale to Quilla Resources?
Has Nexa Resources (NEXA) fully completed the Chapi mine sale transaction?
