IGO divulges on another deal

With its Western Areas acquisition still in progress, IGO has responded to media speculation surrounding a copper mine deal with Glencore. 

IGO today confirmed it had entered exclusive talks with Glencore regarding the CSA copper mine in New South Wales in response to reports alleging IGO was a leading contender for the 50,000 tonnes per annum asset.

While confirming the parties were in discussions regarding a proposed sale, IGO reiterated those discussions were incomplete and that no decision or agreement had been entered regarding CSA.

“IGO confirms that it is in exclusive discussions with Glencore in relation to a proposed sale of CSA,” IGO said in its statement to the ASX.

“However, at this stage, discussions between IGO and Glencore are incomplete and IGO is continuing to conduct due diligence as part of the ongoing sales process.

“IGO has made no decision and nor has it entered into any definitive acquisition agreement with respect to CSA.”

Should the acquisition go ahead, IGO would gain ownership of what is believed to be one of the highest grade copper mines in Australia. 

Broadly, it ties in with the business's focus on the battery metals market. 

The potential deal falls six months after IGO first confirmed it was in discussions to acquire Western Areas and two months after officially confirming the $1.1 billion takeover.

Last week, IGO informed the market that key WSA shareholder Wyloo Metals would support the acquisition.

The parties are also set to partner on a joint effort to evaluate opportunities for nickel downstream processing in Australia.

The potential acquisition adds to a string of corporate activity for IGO, which bought a 49 per cent stake in Tianqi Lithium in 2021 and sold a 30 per cent interest in the Tropicana gold mine to Regis Resources.

IGO says it will keep the market informed in line with its continuous disclosure obligations.

IGO shares are down 5.55 per cent to trade at $11.57.