Orica reveals deal for chemical firm

Australian-headquartered Orica confirmed it has inked a deal to acquire U.S.-based Cyanco Intermediate 4 Corp. for $640 million in a bid to extend its mining chemicals business presence.

Officials said the price tag will be paid via financial backing of US$261.9 million along with existing cash and debt facilities.

Cyanco, a distributor and maker of sodium cyanide mainly for the gold mining industries of the U.S., Canada, Mexico, Latin America and Africa, will be a complement to its established business arm in the sector and will create for it an integrated global network.

“The acquisition will more than double Orica’s existing sodium cyanide production capacity and provide us with the ability to cater to the highly attractive U.S. and Canadian gold mining industries,” Orica MD and CEO Sanjeev Gandhi said.

“By combining these two leading businesses, we expect to improve our ability to serve our customers by enhancing Orica’s global network of transfer stations in key gold mining regions, supporting security of supply to mine sites.”

The acquisition is expected to be completed by the end of fiscal 2024.

Source: Orica

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