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Tuesday, 07 February 2023
Copper Fox Retains Ausenco and Provides Update for Van Dyke Project

Copper Fox Retains Ausenco and Provides Update for Van Dyke Project

2022-10-31

 

The acquisition of a mining company is never easy. After all, the miner owns the property, which means it could be shuttered at any moment. But for the most part, acquisitions of this type go well. Companies that succeed in acquiring other mining operations are often better for it. In the case of the Van Dyke Project, that’s especially the case.

For more than a year, the company kept mum about its plans to develop the Van Dyke Property near Peak, Colorado. But when it finally did give an update on the project, it was good news. The Van Dyke Project has announced that it has retained Ausenco, a metals giant with operations in Australia, and a US subsidiary. The Van Dyke project’s news should come as good as it gets for miners who have been working on developing their central Colorado properties.

What is the Van Dyke Property?

The Van Dyke Property is a 1,300-acre tract of land that would be developed by a metals smelter under a project titled Copper Fox. The property is located in the Arapoa Valley in eastern Douglas County, Colorado.

The property is centered on the Van Dyke Smelter, a proposed smelter that envisions using a process called carbon capture and storage (CCS) to reduce greenhouse gas emissions from the region.

What is Ausenco’s role at the Van Dyke Project?

Ausenco’s role will be to help with technological aspects of the project, particularly the CCS process. The company will also provide construction and mine management expertise.

The company will also help with transportation to and from the project, and help with waste management and the placement of a waste-to-energy facility on the site.

The acquisition of Copper Fox

In March 2016, the Van Dyke Project announced the successful acquisition of Copper Fox, a mining company with operations in Australia. The acquisition of Copper Fox includes a mining business, an engineering consulting firm, an asset management company and a minority interest in a proposed smelter.

The business of Copper Fox will remain under the ownership of the founding family, which will retain an ownership interest of about 50%. The rest of the business will be acquired by a joint venture between Ausenco and a Chinese company. The deal was valued at more than $2 billion.

The engineering and consulting firm of Copper Fox will become a business unit of the Van Dyke Project.

The asset management company of Copper Fox will become a managed investment company managed by Asset Management Company LLC, a wholly owned subsidiary of the Van Dyke Project.

What is Ausenco’s role at Peak?

 
 

Ausenco’s role will be similar to that of the engineering and consulting firm at the Van Dyke Project, though it will focus on the smelting process. The smelting aspects of the project are owned and operated by the Chinese company.

As with the Van Dyke project, Peak will help with transportation, waste management and energy solutions.

The acquisition of Red Zone

In May 2016, the Van Dyke Project announced the acquisition of Red Zone, a copper and gold exploration company. The acquisition of Red Zone includes a 50% interest in a flagship copper and gold project in Peru, and minority interests in other projects in Mexico, South America and Australia.

The flagship project is the Alto de los Tres Pupes copper and gold mine in Peru, which the company plans to develop with assistance from the Peruvian government.

The results of the acquisition of Red Zone have not yet been determined.

Financing at the Van Dyke Project

At the Van Dyke Project, funding is coming from a variety of sources. The most significant are cash and short-term debt. The project has committed to a minimum of $1 billion in annual spending over the next five to six years.

The cash requirement is expected to be met from projects such as water supply, power, waste management, transportation and an expansion of the smelter.

The project also plans to borrow money to help fund its operations. But since the interest rate is expected to be lower than the amount of the loan, the project doesn’t expect to be debt free for long.

Key Takeaway

The acquisition of a mining company is never easy. After all, the miner owns the property, which means it could be shuttered at any moment. But for the most part, acquisitions of this type go well. Companies that succeed in acquiring other mining operations are often better for it. In the case of the Van Dyke Project, that’s especially the case.

For more than a year, the company kept mum about its plans to develop the Van Dyke Property near Peak, Colorado. But when it finally did give an update on the project, it was good news. The Van Dyke Project has announced that it has retained Ausenco, a metals giant with operations in Australia, and a US subsidiary. The Van Dyke project’s news should come as good as it gets for miners who have been working on developing their central Colorado properties.

 

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