Pasminco to Sell Assets to Perilya

It was announced today that Pasminco today announced it had entered into an agreement to sell its mining operations and tenements at Broken Hill to Perilya Limited for A$90 million. The deal sees A$35 million payable in the first 6 months and the remaining A$55 million paid in the form of deferred volume and price linked payments commencing in 6 months and payable for up to 7 years. The volume-linked payments will be made on a $3.30 per tonne basis for ore treated up to a maximum amount of A$25 million. Pasminco will also be entitled to 10% of any increase in the zinc price above US$ 950 per tonne, up to a maximum amount of A$30 million.

While certain aspects still need to finalised, Pasminco will pay current employees their full entitlements when the deal is completed. Completion date for the sale is expected around the middle of the year. The sale is also the first major step in restructuring the company which is currently being reviewed by administrators. Pasminco have also negotiated for supply of concentrates to feed their remaining lead smelting operations in Hobart and Port Pirie.