LONDON: ACG Acquisition Company today announced that it has agreed to the $290 million transaction with Lidya, a subsidiary of Istanbul-based conglomerate Çalık Holding, for the acquisition of 100% of the shares in Polimetal Madencilik Sanayi ve Ticaret A.Ş. and associated sulphide expansion project financing.

Polimetal holds mining rights and operates the Gediktepe mine in Türkiye.

As of today, ACG has received commitments and term sheets providing 100% of the required funding for the upfront transaction consideration and sulphide expansion project capex.

This includes, among other sources of financing, senior debt and equity of $135 million from a leading global mining private equity fund, mezzanine debt and equity of up to $25 million from Traxys Europe SA, and additional equity of $60.0 million from a group of investors led by ACG’s co-sponsors and a leading European family office.

Lidya will also become ACG’s strategic industrial partner acquiring a 30% shareholding in ACG upon completion, along with the right to appoint a director to ACG’s Board.

The Gediktepe Mine is an operating open pit mine located in the Bigadiç district of the Balıkesir province of Western Türkiye. Currently producing gold and silver from oxide ore, Gediktepe is expected to transition to primary copper and zinc production from 2026 following the completion of a fully permitted sulphide expansion project.

The expansion will target annual steady-state copper equivalent production of up to 25 kt of copper equivalent over an initial 11-year mine life (“LOM”).

On completion of the transaction, ACG will enter into a fixed price turn-key $145 million EPC contract with Çalık Holding subsidiary GAP iNSAAT, who will be responsible for delivering the sulphide expansion project on time and will cover any capex overruns under the agreed terms.

ACG is also forming a long-term strategic partnership with GAP iNSAAT, whereby it will have the opportunity to submit tenders for capital expenditure and operational contracts.

Upon completion of this transaction, the Company will be renamed ACG Metals and the Company and the Target will constitute a new group (the “Enlarged Group”).

ACG Metals will offer investors exposure to the expected increased long-term demand for copper, supported by high-calibre management and governance, in a London-listed company with a vision for continued growth and consolidation of copper mines globally.

Artem Volynets, Chairman and CEO of ACG, stated: “We are very proud to announce the acquisition of the Gediktepe mine, an existing gold and silver success story with a bright future in copper. This transaction is a testament to ACG’s commitment to growth and our pursuit of operational excellence.

It is a privilege for us to establish a strategic partnership with Lidya, who share our vision for long-term development in the mining industry and understand the significance of copper in today’s world.”

This transaction will inaugurate ACG Metals as a premier copper producer on the London Stock Exchange. The Gediktepe mine offers us an ideal foundation for further consolidation of copper assets globally as the metal enjoys a sustained increase in demand.

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