15/07/2021 - 16:00

Power, Beament back US company

15/07/2021 - 16:00

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Perth executives Bill Beament and Nev Power are among the key players in a new US company looking to raise $US287 million ($A380 million) to invest in mining and metals.

Power, Beament back US company
Nev Power will be a director of the US company. Photo: Atilla Csaszar

Perth executives Bill Beament and Nev Power are among the key players in a new US company looking to raise $US287 million ($A380 million) to invest in mining and metals.

Texas-based Metals Acquisition Corp SPAC has lodged a prospectus with the Securities and Exchange Commission.

Metals Acquisition Corp is a newly incorporated ‘blank check’ company, or special purpose acquisition company.

It does not have any assets or locked-in business plans but has identified opportunities to invest in ‘electrification’ metals such as copper and lithium along with gold and precious metals.

The company intends to apply to have its units listed on the New York Stock Exchange.

It will be run by chief executive Michael McMullen, who was most recently CEO and President at Canada’s Detour Gold Corporation.

Detour was acquired by Kirkland Lake Gold in 2020 for $C4.9 billion.

Mr McMullen is also a non-executive director at ASX-listed Venturex Resources, the junior copper explorer where Mr Beament became an executive director on 1 July.

MAC’s board will be chaired by Patrice Merrin.

She is a non-executive director at Glencore and was previously chair of Detour Gold.

Mr Power has been named as a director of MAC.

Best known for his time as chief executive at Fortescue Metals Group, Mr Power is currently chair of Perth Airport and a director of Strike Energy.

Mr Beament has been named an adviser to MAC.

He recently left Northern Star Resources after building the company over more than a decade to become a globally-ranked gold miner.

He has joined Venturex after making a substantial investment in the junior copper explorer.

MAC’s advisers also include Nev Power’s son Nicholas Power.

He is the co-founder of Omnia Company, a Perth-based family office and advisory business that operates within the resources, energy, and agriculture sectors.

He also spent time as an executive at Fortescue.

MAC outlined the opportunity is sees in its prospectus.

“Major government initiatives are being rolled out to curb greenhouse gas emissions, in some cases banning internal combustion engine vehicles altogether, through the electrification of transportation and its surrounding ecosystem,” the prospectus said.

“These sectors are currently undergoing what is best described as a once in a century transition that will create value-accretive ripple effects across several core areas, including the mining and metals sector.

“The metals used in electrification will see significant growth over the coming decade,” it stated.

“An average electric vehicle with a 65kwh battery contains approximately: 183lbs of copper, 95lbs of lithium, 99lbs of nickel and 27lbs of cobalt.

“Comparatively, an internal combustion engine vehicle contains approximately 40lbs of copper and negligible amounts of other commodities.

“Consumption of these electrification metals will grow exponentially, with potential deficits forecasted in the coming years due to the lack of new discoveries coming online, driven by the lengthy mining development timeline from discovery to first production.

“An additional opportunity that has arisen within the mining and metals space, driven by global macroeconomic events, is based in gold and precious metals.

“These metals are set to benefit significantly from the large amount of Quantitative Easing (“QE”) that is occurring and expected to continue globally.

“Recently, prices for precious metals have eased considerably due to the rapid global COVID-19 inoculation drive and heavy investment in infrastructure development.

“These factors may create potential value opportunities for the near term as the major global economies continue to grapple with interest and inflation levers.

“In addition, the precious metals industry remains highly fragmented and in need of meaningful consolidation.”

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