Home / Media Release / MMG announces new Khoemacau Joint Venture Agreement

MMG announces new Khoemacau Joint Venture Agreement

MMG Limited (MMG, the Company) (HK.1208) today announced that it has entered into a Subscription and Shareholders’ Agreement with CNIC Corporation Limited (the JV Partner) to establish a joint venture for the Khoemacau Copper Mine in Botswana. This transaction aligns with MMG’s commitment to debt reduction and prudent balance sheet management.

As part of this agreement, the JV Partner will purchase a 45% interest in Khoemacau and MMG will retain a 55% interest. The subscription proceeds from this transaction, amounting to US$500m (being 45% of the equity component of the Khoemacau acquisition plus transaction costs) will be used to repay a US$500m short term loan from the JV Partner, which partially funded the acquisition of Khoemacau by MMG. The transaction will reduce MMG’s current gearing level from around 60%[1] to 55%, which includes the US$1,050 million acquisition term loan with China Development Bank at the Khoemacau Joint Venture Company level.

MMG has a strong, pre-existing working relationship with the JV Partner and has a similar joint venture arrangement at Las Bambas, whereby MMG holds a 62.5% interest and the JV Partner holds a 22.5% interest.

MMG CEO Liang Cao commented:

“The formation of the Joint Venture reflects a prudent way to share the risks and rewards of ownership and mitigates the risk associated with new debt capital, having regard to MMG’s current capital structure and future funding requirements. The transaction also reflects an opportunity to combine MMG’s knowledge and expertise in mining and development, with the resources and experience of a well-established mining investor, to continue to promote MMG’s growth strategy.”

Mr Cao said that the joint venture also improves MMG’s balance sheet flexibility and liquidity going forward, establishing a strong platform for future growth.

Completion of the transaction is expected to occur by the end of May 2024, subject to satisfaction of certain conditions.

Please find the full copy of the Announcement available for download here.

About MMG

Founded in 2009, MMG’s vision is to create a leading international mining company for a low carbon future. The company is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange (HKEX1208). MMG operates and develops copper, zinc and other base metal projects across Australia, Botswana, the Democratic Republic of Congo and Peru.

About Khoemacau

Khoemacau is a high-quality operating mine with a strong expansion case, located in one of the most prospective mining regions in Africa, the Kalahari Copper Belt, in Botswana. The tenement package hosts the tenth largest African copper mineral resource by total contained copper metal and is one of the largest copper sedimentary systems in the world outside of the Central African Copperbelt.


[1] See pro forma balance sheet in Appendix IV of transaction circular released 24 May 2024.