South Africa-based Sibanye-Stillwater (JSE: SSW) (NYSE: SBSW) is buying two nickel and copper mines in Brazil from private equity firm Appian Capital Advisory in a $1 billion deal that boosts the company’s growing battery materials portfolio.
The acquisition of Atlantic Nickel and Mineração Vale Verde from Appian is Sibanye’s fourth battery metal investment this year, and follows a buy in September of a 50% stake in ioneer Ltd’s (ASX: INR) lithium-boron project in Nevada.
The precious metals miner said the transaction also includes a 5% net smelter return royalty (NSR), valued at about $218 million, over potential future underground production from Santa Rita, which CEO Neal Froneman said is one of the world’s ten biggest open-pit nickel sulfide assets.
Appian is keeping its investment exposure to the upside potential of both assets trough NSRs, equivalent to a 35% stream on gross gold revenues in the case of Mineração Vale Verde, as well as by retaining 100% ownership of the Pereiro Velho gold exploration property post-acquisition, the London-based firm said in a separate statement.
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