|
Yamana Gold Inc on Friday said Glencore PLC will buy Newmont Corp's 19% stake in the Mara project.
The Toronto, Canada-based mining company said following the completion of the agreement between Glencore and Newmont, it will remain the operator of Mara project and hold a 56% stake.
Glencore is a FTSE 100-listed commodity trader and miner based in Baar, Switzerland, and Newmont is a gold mining company based in Colorado, US.
Under the pact, Glencore will pay Newmont $124.9 million upon closing and a $30 million deferred payment upon commercial production subject to an annual interest fee of 6%, with total deferred consideration capped at $50 million.
The Mara project is a brownfield project located in the Catamarca province of Argentina. It has mineral reserves of 11.8 billion pounds of copper and 7.4 million ounces of gold contained in 1.1 billion tonnes of ore.
It is a joint venture formed in December 2020 between Yamana Gold, Glencore and Newmont. Glencore had previously operated Minera Alumbrera, in which Yamana was a partner.
Yamana Gold shares were down 3.9% at 370.00 pence each on Friday afternoon in London, as Glencore shares fell 6.0% to 460.80p.
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
