Having recently acquired Discovery Copper Botswana, owner of the mothballed Boseto Copper Mine, out of liquidation for $35 million last month, private equity firm Cupric Canyon Capital is looking to leverage that investment by investing $200 million bring a new copper-silver mine located some 30 kms away into production.
“The cost of the mine would have been much higher had it not been for the processing plant we have acquired,” Reuters reports Sam Rasmussen, Cupric’s Africa CEO, as telling reporters last week. Construction on the new mine, which will be built by Cupric’s Botswana unit Khomacau, is expected to start in 2016 and start shipping copper to the market in 2018. It’s anticipated that the mine will produce 50,000 tonnes of copper and 1.8 million ounces of silver annually.
Cupric Canyon Capital is backed by a unit of Barclays Capital and looks to acquire and develop copper assets before exiting them through a trade sale or public listing.