Orica will acquire 100 per cent of the common stock of Cyanco Intermediate 4 Corp. (Cyanco) for $US640 million in a bid to expand its mining chemicals business.
Cyanco is a US-based leader in the manufacture and distribution of sodium cyanide. It primarily serves the gold mining industries in the US, Canada, Mexico, Latin America and Africa.
The acquisition is set to be funded from Orica’s existing cash and undrawn committed debt facilities.
“I am delighted to announce the acquisition of Cyanco today, accelerating the delivery of Orica’s mining chemicals strategy and creating a leading global mining chemicals business,” Orica managing director and chief executive officer Sanjeev Gandhi said.
“Cyanco is a highly complementary business, and by combining it with our established sodium cyanide business, Orica will create a leading integrated global sodium cyanide producer with world-class supply capabilities in mining.
“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 US and Canadian gold mining industries.”
The acquisition is expected to be completed by the end of the 2023–24 financial year, subject to regulatory waiting periods.
“The acquisition is mutually beneficial to both Cyanco and Orica stakeholders, and we look forward to welcoming Cyanco’s employees to Orica,” Gandhi said.
“We are excited about the opportunities this will create for Orica, our customers, and our shareholder.”
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