Independence sells Jaguar for $73m

Independence Group has agreed to sell its Jaguar base metals operation near Leonora for $73.2 million to diversified investment company Washington H Soul Pattinson and Company.

Under the deal, ASX-listed WHSP, via its subsidiary CopperChem, will pay $25 million on completion of the transaction and an additional $48.2 million in deferred cash payments.

WHSP’s investment portfolio spans telecommunications, building products, natural resources, pharmaceuticals, agriculture and real estate.

Independence managing director Peter Bradford said the Jaguar operation did not fit with the company’s strategy.

“IGO’s strategic focus is on high-quality assets of scale and longevity with an evolving focus on assets that are aligned to the emerging super-cycle for energy storage minerals,” he said.

“Although IGO recognises the opportunity for future discovery in this zinc-copper-silver-gold VMS camp, continuing ownership is not consistent with our strategy nor core to the business.

“This (sale) enables IGO to concentrate on delivery from, and growth of, our key assets, Nova and Tropicana, and the execution of our exploration strategy.”

Independence purchased Jaguar, which is prospective for zinc, copper, silver and gold, in 2011 from Jabiru Metals.

At that point it comprised the Jaguar and Bentley underground mines.

The Jaguar mine was put on care and maintenance in 2012 and since then all ore has been sourced from the Bentley mine and processed through the Jaguar concentrator to produce a high-grade zinc concentrate as well as a copper concentrate rich in silver and gold credits.

Euroz Securities and Herbert Smith Freehills advised Independence on the sale, while Pitt Capital Partners and McCullough Robertson advised WHSP.

WHSP, via its subsidiary CopperChem, purchased the Stockman copper-zinc project for $47.2 million from Independence in June last year.

Shares in Independence were off 0.4 per cent at $4.69 at 130pm AEDT.