 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) - Today, Glencore (LSE: GLEN) and Pan American Silver (NYSE: PAAS) (TSX: PAAS) announced they have reached an agreement for Glencore to acquire the 56.25% stake in the MARA copper-gold project in Argentina from Pan American.
According to a press release, under the terms of the agreement, Glencore will pay $475 million in cash upon closing and grant Pan American a copper net smelter return (NSR) royalty of 0.75%.
The project was first formed through the integration of the Minera Alumbrera plant and mining infrastructure and Agua Rica project in a joint venture between Yamana Gold, Glencore and Newmont in December 2020.
Glencore said it acquired Newmont’s 18.75% stake in October 2022, bringing its shareholding to 43.75%. Pan American acquired Yamana Gold’s 56.25% stake as part of its acquisition of Yamana Gold in March 2023.
MARA, located in the Catamarca province of Argentina, 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. It has a 27-year mine life based on mineral reserves supported by more than 86 kms of drilling.
Glencore noted that the brownfield MARA project ranks as one of the lowest capital-intensive copper projects in the world today, owing to the existing well maintained Alumbrera processing plant and associated infrastructure.
“MARA is expected to be in the top 25 global copper producers when operational, with an expected average copper production over the first 10 full years exceeding 200kt per annum (with further material by-product credits),” it added.
Glencore expects the transaction to be completed in Q3 2023. Upon completion of the transaction, Glencore will become the sole owner and operator of MARA.
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities.
Pan American is a leading producer of precious metals in the Americas, operating silver and gold mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile and Brazil. The company also owns the Escobal mine in Guatemala that is currently not operating.
|
| New Gold cuts quarterly net loss as gold equivalent production up 45% in second quarter |
