Monte Cello BV (MCBV), a 100% subsidiary of Vedanta, has entered into a Term sheet agreement to divest Copper Mines of Tasmania (CMT) by way of an Option Agreement with New Century Resources.
MCBV is 100% owner of the Mt Lyell Copper Mine in Australia, a small copper asset which has been on care and maintenance for the last 5 years and not strategic for Vedanta with it's size and country presence.
The terms of the Option Agreement include a minimum expenditure commitment of US$10 million over the two-year option period by New Century towards development and exploration, plus reimbursement of ongoing care and maintenance activities, with an option of right to terminate after 12 months. The transaction is subject to full-form documentation, which are expected to be signed by the end of October 2021.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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