A Bermudian-based company is helping to fund the $1 billion-plus acquisition of one of Australia’s oldest mines.

Osisko Bermuda Limited, a subsidiary of Montreal-headquartered Osisko Gold Royalties Ltd, has entered into a revised binding agreement with Metals Acquisition Corp with respect to the purchase of a 100 per cent silver stream on the producing CSA mine in New South Wales to partially fund MAC’s acquisition of the mine.

MAC has filed a preliminary Form F-4 with the US Securities and Exchange Commission for their review purposes, which includes, among other things, details of its proposed acquisition of 100 per cent of the shares of the owner of CSA from a subsidiary of Glencore plc.

The transaction, announced earlier this year, is said to be valued at $1.1 billion.

MAC is led by chief executive officer Mick McMullen, the former CEO and president of Canadian gold producer, Detour Gold Corporation.

Separately, OBL and MAC have entered into a backstop financing agreement with respect to an up to $75 million copper stream. The backstop copper stream may be utilised, in whole or in part, by MAC to fund any shortfall in the equity financing required to complete the acquisition transaction, subject to certain conditions precedent.

Closing of the acquisition, and as a result the silver stream and backstop copper stream, is subject to a number of conditions precedent, including MAC raising the necessary financing required to complete the deal.

Sandeep Singh, president and chief executive officer of Osisko, said: “CSA is one of the highest grade copper mines in Australia with a multi-decade operating history of consistent production and a track-record of reserve and resource replacement.

“The silver stream and contingent backstop copper stream meet all of Osisko’s stringent investment criteria, and will provide near-term and long-life cash flows in a top-tier jurisdiction.

“MAC has secured commitments totalling approximately $500 million in debt and stream financing from international mine financiers (including Osisko) to complete the acquisition of CSA and is working on completing the necessary regulatory steps to finalise the required equity financing.

“We are pleased to continue to support the MAC team, and look forward to the conclusion of the transaction in 2023.”

The CSA mine is a high-grade, long-life, underground copper-silver mine located near the town of Cobar in New South Wales, Australia.

CSA was first discovered in the 1870s, and large scale production commenced in the mid 1960s.

Today, the mine operates 24 hours a day and employs 500 people. It has an estimated remaining mine life of more than 15 years.

At nearly 1.2 miles deep, it is the second deepest copper mine in the country.

CSA stands for “Cornish, Scottish and Australian” after the nationalities of its first owners.