Antofagasta PLC — M&A Activity 2016

Nov 28, 2016

National Storage Mechanism | Additional information

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RNS Number : 2339Q

Antofagasta PLC

28 November 2016

London, 25 November 2016

SALE OF MICHILLA

Antofagasta plc ("Antofagasta" or the "Company") is pleased to announce that following the closure of the Michilla mine at the end of 2015 it has today signed an agreement to sell Minera Michilla SA ("Michilla") to Haldeman Mining Company SA (HMC), a medium sized Chilean mining company that produces copper and gold in Chile, for a total consideration of $52 million.  The transaction includes the open pit mine, the underground mine, the cathode production plant and various mining properties. Antofagasta will retain the acid terminal and other facilities located at Caleta Michilla, which are currently used by its Centinela and Antucoya mining operations.

Notes to Editors:

About Minera Michilla SA

Antofagasta acquired Michilla in 1992, giving rise to what today is the Company's mining division.  At the end of 2014, Antofagasta announced the decision to close its operations at Michilla on 31 December 2015 as the reserves were insufficient to sustain and justify a large-scale mining operation.  Annual copper production in 2015 was 29,400 tonnes, with record production of 52,730 tonnes being achieved in 2003.

About Haldeman Mining Company SA

HMC is a Chilean medium-sized mining company, with the Cardone Solari and Solari Donaggio families controlling 60% of the shares. The company has copper and gold mining operations in the First and Fourth Regions of Chile. In the Fourth Region, HMC operates Tambo de Oro which produces 30,000 ounces of gold per year and, in the First Region, the Sagasca project, which has an annual operating capacity of 19,000 tonnes of copper cathode.

Investors - London                                                                Media (Brunswick)

Andrew Lindsay     alindsay@antofagasta.co.uk        Carole Cable        antofagasta@brunswickgroup.com               

Paresh Bhanderi    pbhanderi@antofagasta.co.uk     Will Medvei         antofagasta@brunswickgroup.com               

Telephone                 +44 20 7808 0988                               Telephone              +44 20 7404 5959

Investors - Santiago                                                             Media - Santiago

Alfredo Atucha        aatucha@aminerals.cl                   Pablo Orozco            porozco@aminerals.cl

Telephone                +56 2 2798 7000                                  Carolina Pica             cpica@aminerals.cl

Telephone                   +56 2 2798 7000

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This information is provided by RNS

The company news service from the London Stock Exchange

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