Atalaya Mining has completed the purchase of Tharsis Mining, securing full ownership of two past-producing mines in the Iberian Pyrite Belt in southern Spain for a total consideration of €125m ($139m).

The deal involves an initial cash payment of €75m, with a further €50m to be paid within 12 months, backed by a bank guarantee and accruing interest at 12-month EURIBOR plus 1.5%.

Payment for the transaction was funded from Atalaya’s existing cash reserves, which remain above €260m on a pro-forma basis following the initial outlay.

The acquisition covers the Tharsis Project and the La Zarza Project, both situated in Andalucía and previously operated to extract copper, pyrite, and other metals.

The sites are located near Atalaya’s existing Riotinto complex, with Tharsis positioned about 100km west of Seville and La Zarza roughly 85km northwest of the city.

Both projects benefit from established regional infrastructure including road and port access, as well as a skilled local workforce.

Combined, Tharsis and La Zarza host mineral resources estimated at 227.7mt containing approximately 1.5mt of copper, 3.5mt of zinc, 1.4mt of lead, 7.5moz of gold, and 157.4moz of silver.

Of these, around 199.2mt are described as potentially suitable for open-pit mining.

Both sites have histories of extensive drilling and metallurgical work, according to Atalaya Mining.

Atalaya CEO Alberto Lavandeira said: “The acquisition of Tharsis Mining represents another important step in our strategy to establish Atalaya as a leading European copper producer. We have followed progress at Tharsis Mining for many years and are pleased to have now reached this agreement.

“Tharsis and La Zarza are two substantial past-producing assets with significant resources and exploration potential. Their proximity to our existing operations provides an excellent opportunity to leverage our technical expertise, regional presence and operating capabilities.”

Atalaya plans to initiate technical studies, permitting, and further exploration across the newly acquired assets.

The company indicated that project development at Tharsis and La Zarza would follow completion of its ongoing work at Proyecto Touro in Galicia.

The transaction also brings additional exploration licences within the Iberian Pyrite Belt into Atalaya’s portfolio.

All outstanding balances and loans between Tharsis Mining and the sellers were settled at closing as part of the transaction, but Atalaya noted that certain legacy and contingent liabilities estimated at €7m remain with the acquired business.

Tharsis Mining, established in 2018, focused on the reactivation of its mining projects prior to the sale.

Mining operations at Tharsis ceased in 2001, while La Zarza saw its last production in 1991.