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.