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THIS ANNOUNCEMENT IS NOT INTENDED TO CONSTITUTE, AND SHOULD NOT BE CONSTRUED AS, AN OFFER TO SELL OR A SOLICITATION OF ANY OFFER TO BUY THE SECURITIES OF THE COMPANY (AS DEFINED BELOW) IN ANY JURISDICTION WHERE IT WOULD BE UNLAWFUL TO DO SO

20 December 2024

ACG METALS LIMITED

("ACG" or the "Company")

ACG Completes USD 200 Million Bond Placement

ACG Metals Limited today announces that its subsidiary, ACG HoldCo 1 Limited, has completed the placement of USD 200 million of new four-year, senior secured bonds with a coupon rate of 14.75 percent at par. The bond placement launched on 19 December 2024 and met strong investor demand across European and international markets.

Settlement is expected on or about 13 January 2025, subject to customary conditions precedent, and an application will be made for listing of the new bonds on the Nordic ABM. Net proceeds from the new bond issue will be used towards fully financing the Sulphide expansion project at the Company's operating Gediktepe Mine in Türkiye, and for general corporate purposes. As part of the offering, all outstanding balances on ACG's existing gold prepay debt facility with Traxys Europe S.A. and Argentem Creek Partners will be consolidated into the bonds, resulting in one USD 200 million senior debt instrument in the Company's capital structure. The new bonds are callable at ACG's option after two years.

Following the bond issuance, ACG is now fully funded to deliver the Sulphide expansion project at its operating Gediktepe Mine, enabling the transition from primary gold and silver production to copper and zinc concentrate production with gold and silver by-product sales. It is anticipated that, once completed, the Sulphide expansion project will produce 20-25 thousand tonnes copper equivalent at first quartile all-in sustaining costs over an initial 11-year life, underpinning an attractive after-tax IRR of more than 30% at current consensus commodity prices.

Given ACG's strong cash flow generation from its existing operations, and fixed price turnkey EPC contract for the Sulphide expansion project, the Company is expected to maintain a strong financial position and healthy cash balance throughout the construction period.

Artem Volynets, Chairman and CEO of ACG, said:

"We are extremely proud to have concluded this fundraising only three months after completing the acquisition of Gediktepe mine. We are pleased to welcome a broad spread of high-quality bond investors to the ACG story. Securing funding to advance the Sulphide project and the transition to copper production is a key step in ACG's goal of becoming a leading copper producer in the London market and demonstrates our ability to access deep pools of capital. Once completed, our copper production at Gediktepe will provide the bedrock for further organic and inorganic growth for the Company.

With our outstanding project team and fixed price $146m EPC contact with GAP INSAAT, a leading Turkish contractor and subsidiary of our major shareholder, Çalik Holdings, we are fully confident of delivering the project on budget and on time. First production is expected in early 2026.  With very strong cash flow generation and 73% operating margin at consensus pricing, we are well positioned to create value for ACG shareholders whilst maintaining a solid balance sheet."

ABG Sundal Collier ASA and Stifel Europe AG acted as Joint Lead Managers and Bookrunners for the bond issue with Clarksons Securities AS acting as Joint Bookrunner.

- ENDS -

The person responsible for the release of this information on behalf of the Company is Artem Volynets, Chairman & Chief Executive Officer.

For further information please contact:

Palatine    

Communications Advisor

Conal Walsh / James Gilheany/ Kelsey Traynor/ Richard Seed

[email protected]

Inside Information

This announcement contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation No. 596/2016 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("EUWA").

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