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Belgium-based mining company Nyrstar has signed a share purchase agreement to sell its Contonga mine in Peru and other multiple mineral claims in Quebec, Canada, to subsidiaries of Glencore.

The agreement was finalised at a consideration of $26m. Subsidiaries of Glencore will pay $21m to acquire Contonga mine and the remaining $5m for mineral claims in Canada.

The Contonga mine is nearly 470km from Lima, the capital of Peru. It is authorised to process 1,200t of ore a day.

The transaction is subject to all customary closing conditions, and expected to be completed during the first half of 2017.  

This agreement is a part of the sale process for majority of the Nyrstar’s mining assets, which were initiated last January. Nyrstar has already completed the sale of El Toqui mine in Chile and announced the sale of El Mochito mine in Honduras.

"Contonga mine is authorised to process 1,200t of ore a day."

Nyrstar will continue the sale process further and is expected to announce more updates subsequently.

The Belgium-based company started expanding in the mining sector from 2009, yet started incurring losses due to various operational issues.

For this latest transaction, Nyrstar has hired BMO Capital Markets Limited and Lazard & Co financial advisors.

Nyrstar focuses on mining zinc, lead and other base metals crucial for urbanisation and industrialisation.

Employing more than 5,000 people, it has operations in Europe, the Americas and Australia.

Image: Peru's Contonga mine. Photo: courtesy of Nyrstar.