ACG will partially fund Appian buy with bank loan debt

Chicago, June 14 – ACG Acquisition Co. Ltd. (ACG) entered into an agreement for the acquisition of Brazilian companies Atlantic Nickel and Mineraçao Vale Verde from Appian for a total cash consideration of $1.065 billion, according to information from a press release.

The total consideration includes a $65 million payment to extinguish the gold stream over Mineracao Vale Verde.

Some of the cash consideration will come from senior bank debt underwritten by Citigroup, ING and Societe Generale, banks that have also agreed to provide a revolving credit facility.

The company will also fund the transaction from royalty financing from Royal Gold and a planned equity offering of $300 million, with a $50 million backstop on the equity financing from Appian funds.

In connection with the acquisition of the nickel sulphide and copper mines, ACG has entered into long-term contracts with Volkswagen’s in-house battery supplier Glencore and Stellantis, the owner of Fiat and Peugeot, for offtake and funding.

Glencore and ACG have each committed to making $100 million anchor equity investments in ACG.

Separately, La Mancha Resource Capital Fund, a mining investment fund, has made a $100 million equity investment.

ACG, a special purpose acquisition company, based in London, is focused on consolidating the critical metals industry.

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