Blackthorn and Glencore Form Mining JV

28 November 2010 (Last Updated November 28th, 2010 18:30)

Blackthorn Resources has entered into a joint venture agreement with Glencore for the Perkoa Zinc project in Burkina Faso, Africa. The agreement requires Glencore to fund $80m for the construction of the project, comprising $50m in direct project equity and $30m in project finance to the

Blackthorn Resources has entered into a joint venture agreement with Glencore for the Perkoa Zinc project in Burkina Faso, Africa.

The agreement requires Glencore to fund $80m for the construction of the project, comprising $50m in direct project equity and $30m in project finance to the JV.

Under the terms of the agreement, Glencore will also manage and operate the Perkoa Zinc project over the projected 9.5-year mine life.

Construction activity will progress in late 2010 and underground mining is expected to start during the first half of 2011.

Glencore will obtain an effective 50.1% share in the Perkoa Zinc project, with Blackthorn retaining a 39.9% interest and the Burkina Faso Government retaining 10% at free carried interest.