LONDON - ACG Metals Limited, a mining company, has successfully completed a bond placement of $200 million, earmarked for expanding its Gediktepe Mine in Türkiye. The bond issue, which was launched on December 19, 2024, received strong investor interest from European and international markets.
The four-year senior secured bonds carry a coupon rate of 14.75 percent and are expected to settle around January 13, 2025, with the intent to list on the Nordic ABM. The proceeds will finance the Sulphide expansion project, transitioning the mine's focus from gold and silver to copper and zinc concentrate production, alongside gold and silver by-products.
The expansion is projected to yield 20-25 thousand tonnes of copper equivalent annually at competitive costs, with an anticipated lifespan of 11 years. This initiative is expected to deliver an after-tax internal rate of return (IRR) exceeding 30% based on current commodity price consensus.
ACG's CEO, Artem Volynets, expressed confidence in the project, citing the company's strong cash flow and a fixed-price EPC contract with GAP INSAAT for the expansion. The move is seen as a strategic step towards ACG's goal of becoming a prominent copper producer in the London market.
The bond issue consolidates ACG's existing gold prepay debt facility into a single $200 million senior debt instrument, simplifying the company's capital structure. The bonds are callable after two years at the company's discretion.
ABG Sundal Collier ASA and Stifel Europe AG served as Joint Lead Managers and Bookrunners for the bond issue, with Clarksons Securities AS acting as Joint Bookrunner.
This financial milestone follows ACG's recent acquisition of the Gediktepe mine and underscores its ability to attract capital for growth. The first production from the Sulphide expansion is anticipated in early 2026, positioning ACG to capitalize on strong market margins and maintain a robust balance sheet.
The information in this article is based on a press release statement from ACG Metals Limited.
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