ACG Acquisition Co Ltd on Monday warned that its Brazilian mining purchase deal may collapse, but it said that discussions continue.

ACG is a special purpose acquisition company focused on new economy metals and other mining materials.

ACG said that discussions between its anchor investors and Appian Capital Advisory LLP are ongoing, but it is yet to reach an agreement regarding the proposed acquisition.

However, the agreement’s long stop date, which was on Friday last week, has now passed. This means the acquisition agreement may be terminated at any time.

ACG has 12 months from the completion of its initial public offering, until October 12, to complete an acquisition.

In mid-June, ACG announced that it had agreed the acquisition of the Atlantic Nickel nickel sulphide mine in Santa Rita and the Mineracao Vale Verde copper mine in Serrote, both in Brazil, from funds advised by Appian for an enterprise value of $1.0 billion.

Afterward, ACG would be renamed to ACG Electric Metals Ltd.

ACG shares were untraded at $10.30 each in London on Monday morning. At its IPO in October last year, the shares were priced at $10.00 each.

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