ACG Acquisition, a special purpose acquisition company, has announced a $290m transaction with Lidya, a subsidiary of Çalık Holding, to fully acquire Polimetal Madencilik Sanayi ve Ticaret.
As a result, the Gediktepe mine, operated by Polimetal in Türkiye, is now under ACG’s umbrella.
This move positions ACG as a leading copper miner on the London Stock Exchange amid increasing copper demand, essential for the energy transition.
ACG is financing the deal using $100m in cash, $37m in its shares for Lidya, $67.5m in equity investments, $40m in gold prepayments, $110m in senior debt, $22.5m in mezzanine debt and $13m in cash flows from the existing oxide operation.
Lidya will acquire a 30% stake in ACG and gain the right to appoint a director to ACG’s Board, becoming its strategic industrial partner.
The Gediktepe Mine, currently an open-pit operation producing gold and silver, is set to transition to copper and zinc production from 2026 after the sulphide expansion project, which is fully permitted.
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The expansion aims for an annual steady-state production of up to 25,000 tonnes (t) of copper equivalent over an 11-year initial mine life.
ACG also secured a fixed price turnkey $145m engineering, procurement and construction (EPC) contract with Çalık Holding subsidiary GAP İnşaat for the expansion project, which includes a capital expenditure (capex) overrun guarantee.
In addition to the EPC contract, ACG is establishing a long-term strategic partnership with GAP İnşaat, opening opportunities for future capex and operational contracts.
Following the transaction, which is anticipated to complete before 31 August, ACG will rebrand as ACG Metals.
ACG chairman and CEO Artem Volynets said: “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.”
