La Mancha chips in USD 100 mn for Brazilian mine acquisitions: The La Mancha Fund — backed by Egyptian investor Naguib Sawiris — is backing the USD 1 bn acquisition of two Brazilian mines by London-listed SPAC ACG Acquisition Company, according to a statement (pdf) released last week. The fund has invested USD 100 mn in support of the deal, which will see the blank-check firm acquire the Santa Rita nickel sulfide and the Serrote copper mines in Brazil.

Big name investors behind the takeover: The acquisition is also being backed by global commodities giant Glencore, Chrysler parent Stellantis, and VW’s battery unit PowerCo. Each — including La Mancha — will invest USD 100 mn to purchase themines. PowerCo’s USD 100 mn investment will come in the form of a nickel prepayment.

Metals refined for EV batteries: The metals will be refined at Glencore’s facilities in Western Europe and North America and the refined metals will then be used by Stellantis, PowerCo and other manufacturers to make EV batteries.

ACG gets a new name and new owners: The firm will change its name to ACG Electric Metals and issue new shares, giving Glencore, Stellantis and La Mancha a 51% ownership stake and leaving 49% for free float, ACG CEO Artem Volynets told Reuters.

BACKGROUND: La Mancha in 2021 transformed itself into a USD 1.4 bn mining fund that includes all of La Mancha’s current gold mining assets as well as a USD 100 mn contribution from an unnamed strategic investor.

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