(Kitco News) - Today, Glencore announced it has reached an agreement with Newmont in which Glencore will acquire Newmont’s 18.75% shareholding in the MARA project, located in Argentina.
According to the company’s statement, under the terms of the agreement, Glencore will pay $124.9 million upon closing and a $30 million deferred payment upon commercial production subject to an annual interest charge of 6%. Total deferred consideration is capped at $50 million.
Glencore said that following completion of the transaction, it will own 43.75% of MARA, adding that the closing of the transaction is subject to customary conditions and regulatory filings.
The MARA project was formed as a joint venture in December 2020 between Yamana Gold, Glencore and Newmont following the integration of the Minera Alumbrera plant and mining infrastructure and Agua Rica project.
The company noted that under the new structure, Yamana Gold will remain the operator with 56.25% of MARA, with Glencore owning the remaining shares.
On a 100% basis, MARA has proven and probable mineral reserves of 5.4 million tonnes of copper and 7.4 million ounces of gold contained in 1.105 billion tonnes of ore with an initial mine life of 28 years.
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities.
|
| Atlantic Lithium announces 'robust' PFS results for Ewoyaa lithium project with IRR of 224% |
