Altona completes $US95m asset sale

Perth-based Altona Mining announced the completion of its $US95 million Finnish assets sale to Swedish miner Boliden Mineral AB and has received $US89.2 million in cash as the first tranche of payment.

Altona said that about $US3 million in adjustments has been estimated to allow for movements in working capital, net debt and capital expenditure for the time between the execution of the agreement in July, and today’s completion.

The company estimated its cash balance to be about $131 million by November, roughly $6 million better than what it previously estimated in July, when the sale was first announced.

Altona said it would return $80 million to its shareholders through cash payments of 15 cents per share.

“The company expects to receive a public ruling from the Australian Taxation Office in October which will allow Altona to determine the composition of the cash payment,” Altona said in a statement.

Altona will retain its Hautalampi project near Outokumpu in Finland, but it has granted Boliden an option to either mine the deposit in exchange for a 2 per cent royalty payment or purchase the project outright for $US3 million.

It has held onto its Sarkiniemi mine.

Credit Suisse acted as financial advisers to Altona for the transaction, while Gilbert + Tobin acted as the company’s legal adviser.

Altona’s share price rose by 4.5 per cent to 23 cents per share at 10:40am.