Spain's Atalaya Mining Acquires Two Historic Copper Polymetallic Mines for €125 Million
en.Wedoany.com Reported - On November 11, Spain's Atalaya Mining completed its acquisition of Spanish company Tharsis Mining, obtaining 100% equity for €125 million and gaining the Tharsis and La Zarza historic mining areas and related exploration rights in the Andalusia region of Spain. The two mining areas have a combined mineral resource of approximately 227.7 million tonnes, containing approximately 1.5 million tonnes of copper, 3.5 million tonnes of zinc, and 1.4 million tonnes of lead, along with approximately 7.5 million ounces of gold and approximately 157.4 million ounces of silver.
The transaction consideration is payable in two parts. Atalaya Mining will pay €75 million in cash at closing, with the remaining €50 million payable within 12 months after closing, guaranteed by a bank guarantee, with the deferred amount bearing interest at the 12-month Euro Interbank Offered Rate (EURIBOR) plus 1.5%. The first installment comes from the company's existing cash reserves, and pro forma net cash remains above €260 million after payment. The transaction does not involve the issuance of new shares, and the acquired Tharsis Mining group retains approximately €7 million in identified historical and contingent liabilities.
Both mining areas are located in the Iberian Pyrite Belt, relatively close to Atalaya's existing Riotinto copper mine complex. The Tharsis mining area is located approximately 50 kilometers west of Riotinto, with ore bodies composed of multiple volcanogenic massive sulfide deposits containing copper, zinc, lead, gold, and silver. Mining at this site began in the 1850s, historically producing mainly pyrite, with cumulative raw ore extraction of approximately 34 million tonnes, and mining ceased in 2001. From 2020 to 2022, the previous owner conducted approximately 77,500 meters of drilling, and a preliminary economic assessment completed in 2023 studied an open-pit mining and hydrometallurgical scheme processing 5 million tonnes of ore per year.
The La Zarza mining area is located approximately 25 kilometers west of Riotinto, with historical mining activities dating back to the ancient Roman period. In the late 19th century, pyrite was produced on a large scale through open-pit and underground mining, with cumulative extraction of approximately 40 million tonnes over the years. The mining area currently has mineral resources of approximately 107 million tonnes, containing approximately 800,000 tonnes of copper, approximately 1.51 million tonnes of zinc, approximately 520,000 tonnes of lead, approximately 3.58 million ounces of gold, and approximately 81.86 million ounces of silver. The Tharsis mining area has resources of approximately 120.7 million tonnes, and a combined total of approximately 199.2 million tonnes of resources across the two mining areas is classified as having open-pit mining potential, though further technical studies and approvals are still required.
Following completion of the acquisition, Atalaya Mining will first carry out technical studies, engineering design, exploration, and permit applications, and will schedule the development of the two mining areas after the Touro copper project in Galicia. The company also plans to utilize the existing beneficiation, processing, and operational facilities at the Riotinto mining area to study production and management synergies among multiple mining projects in the region.
