Appian Capital Advisory has made the decision to sell its 100% owned Atlantic Nickel and Mineração Vale Verde operations in Brazil, to ACG Acquisition Company Limited (LON: ACG) for an estimated US$1B.
The private equity firm obtained investment from battery metals centric mega-companies, including the likes of Glencore (LON: GLEN) and Volkswagen.
The deal includes the sale of Appian’s gold royalty on Mineração Vale Verde (MVV) to ACG for further US$65M.
Appian acquired Atlantic Nickel, owner of Santa Rita, one of the most significant open pit nickel sulphide mines in the world in 2018. Similarly, in the same year they also purchased MVV, the owner of the Serrote greenfield open-pit copper-gold project in Brazil. Both mines are long-life, low cost, and ranked within the first decile for carbon emissions amongst all nickel and copper producers worldwide.
The corporation has entered long-term investment partnerships with Glencore, PowerCo (Volkswagen’s in-house battery development subsidiary), and Stellantis (owner of Fiat and Peugeot), for offtake and funding.
Michael W. Scherb, founder and CEO of Appian, commented, “Appian began investing in decarbonization commodities a decade ago, recognizing that society was structurally undersupplied for the upcoming energy transition. The innovative transaction in the battery metals space will mark Appian’s 10th, 11th, and 12th exits, reflecting the strength of our operating model and ability to identify, acquire, and optimize mining assets. Likewise, ACG is a great custodian for Atlantic Nickel and MVV and is well placed to unlock significant further growth from these market-leading companies”.
“The Glencore, Volkswagen, and Stellantis partnerships are particularly notable, underlining the growing need for EV commodities, and the demand for robust, transparent, and traceable supply chains from western automotive OEMs industry and other stakeholders.”
Backing the investment is Glencore, who have committed to investing US$100M in ACG equity. Additionally, Stellantis and mining investment fund La Mancha will each provide an equal equity investment, while PowerCo will make a US$100M nickel prepayment.
Upon closing, ACG will be renamed ACG Electric Metals and issue new shares, making Glencore, Stellantis, and La Mancha owners of 51%, leaving 49% for free float.
