Australian metals and coal miner South32 is ploughing $1.5 billion into a minority stake in Canada’s Arizona Mining, which aims to realise a zinc-lead-silver venture in Arizona.
The Perth-based miner, which span off from BHP Billiton in 2015, has agreed to purchase 45 million shares in Canadian junior at $2.45 a share, netting itself 15% of Arizona Mining outstanding shares.
Arizona said it would use the cash to progress its Heromosa project, which consists of a zinc-lead-silver sulfide deposit and a silver-manganese-zinc manto oxide deposit and is valued at £1 billion.
South32 CEO Graham Kerr said: “This is a highly prospective project and is another step in our strategy to identify opportunities outside of our current portfolio.
The deal comes just weeks after South32 decided to abandon a $200 acquisition of Peabody’s coal mine in New South Wales.