In an attempt to reduce its debt, Asarco (NYSE) has sold its 15% stake in Australian-based MIM Holdings.
The sale generated US$331.2 million, which will result in an after-tax gain of US$39 million (or 91 cents per share) for the second quarter.
The sale is also expected to improve the company’s debt-to-capitalization ratio, and reduce annual interest expenses by US$21 million.
The shares were sold internationally to institutional investors.
As a result of the sale, Asarco will relinquish its two seats on MIM’s board of directors.
MIM owns the Mount Isa-Hilton polymetallic mine in Queensland, Australia, and holds a 25% interest in the Porgera gold mine in Papua New Guinea.
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