Glencore signs deal to sell two zinc properties in Africa for $400m
Glencore has entered a definitive agreement to sell an 80% interest in the Rosh Pinah mine in Namibia and a 90% share of Perkoa mine in Burkina Faso, to Trevali Mining.
Under the agreement, Trevali Mining will pay $400m as aggregate consideration for this acquisition.
Trevali will provide $244m in cash, while the remaining $156m will be paid by issuing 175,125,304 shares. Furthermore, the company has agreed to pay an additional $30m to Glencore to repay an existing debt facility.
The acquisition is expected to increase Trevali’s geographic footprint and access to global capital markets. It also increases Glencore’s direct ownership in Trevali from 4% to 25%.
Glencore zinc marketing head Daniel Mate said: “We are pleased to strengthen our partnership with Trevali as they embark on the development of the premier zinc company in the market.
“Trevali has a proven track record in the sector demonstrated by the success in opening up the Santander mine in Peru and the Caribou mine in Canada.
“We have been working together as partners since their first mine was built and we share the same vision for the future growth of the business through value-creating organic and inorganic growth opportunities.”
The deal is subject to customary regulatory approvals and is expected to complete by July this year.
After completion, Trevali will gain two African projects to its portfolio of zinc assets. Glencore will have the offtake from all four of Trevali’s mines.
Trevali will improve its annual zinc production to around 230,000t and have operational presence in three continents, namely North America, South America and Africa.