Anglo American has sealed agreements to sell two royalties to Taurus Funds Management for a maximum cash consideration of $195m.
The deal will see Anglo American receiving $150m in upfront cash and up to $45m in deferred cash payment, contingent upon certain conditions.
Taurus has agreed to purchase an iron ore royalty held by De Beers, which is linked to the Onslow Iron project in West Pilbara, Australia.
This will see Taurus buying the De Beers subsidiary that owns the royalty for an upfront cash payment of $125m and up to $25m in deferred payment.
Taurus will also acquire a gold and copper royalty related to the Caspiche project in northern Chile for an upfront cash payment of $25m and up to $20m in deferred consideration.
The transaction is due to complete in Q4 2024, subject to the fulfilment of standard closing conditions.
Anglo American was recently also in the news for weighing otions to move forward with the sale of its coal assets, after an underground fire at its Grosvenor steelmaking coal mine in Queensland, Australia.
The sale is part of the company’s broader restructuring programme announced earlier this year to counter a takeover attempt by BHP Group.
Anglo American rejected the £39bn buyout proposal by BHP, citing concerns about its complex structure and execution risks.
The restructuring initiative of Anglo American will focus on expanding copper, iron ore and crop nutrients assets, while selling less profitable operations.
