Glencore has reached an agreement to acquire an additional stake in Peruvian zinc miner Volcan Compañia Minera, in a deal valued between $531m and $956m.
Glencore currently holds a 7.68% economic interest in Volcan, and will acquire 26.73% of the total class A common (voting) shares until the agreement.
Glencore said in a statement: “Volcan’s operations are located in the richest polymetallic production area in Peru, producing some of the highest quality zinc concentrates.
“The transaction will provide an increase and extension of Glencore’s zinc production profile and the opportunity for synergies with Glencore’s existing Peruvian zinc operations.”
Towards the completion of the acquisition, the company is expected to make an offer to all of Volcan’s shareholders through a public tender offer.
According to the company, the offer will be for up to 48.19% of the total class A common shares of Volcan.
Once the deal is complete, Glencore is expected to hold between 44.84% and 66.30% of the total class A common shares, while its economic interest in Volcan will range between 18.98% and 28.07%.
The deal is due to close by December.
Volcan’s operations are located in the central mountains of the Peruvian Andes and include the Yauli, Chungar, Alpamarca and Cerro de Pasco operating units.