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Glencore zinc transaction with Trevali

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Dry Bulk,


Glencore plc has entered into a definitive agreement with Trevali Mining Corp., whereby Trevali will purchase Glencore’s 80% interest in the Rosh Pinah mine in Namibia and 90% interest in the Perkoa mine in Burkina Faso. The aggregate consideration is US$400 million. Trevali will also pay Glencore US$30 million to repay an existing debt facility. The transaction is anticipated to close by July 2017.

The transaction will add two African zinc assets to Trevali’s portfolio of mines in Peru and Canada. The transaction will materially increase Trevali’s geographic footprint and access to global capital markets. This will enable the company to take advantage of the significant opportunities to grow across the zinc market.

Glencore will increase its direct ownership in Trevali to 25% and its board membership to a total of two seats.

Following the completion of the transaction, Trevali will have an annual production of approximately 230 000 t of contained zinc and will have operational presence in North America, South America and Africa. Glencore will have the offtake from all four of Trevali’s mines.

Daniel Mate, Glencore’s Head of Zinc Marketing, said: “We are pleased to strengthen our partnership with Trevali as they embark on the development of the premier zinc company in the market. Trevali has a proven track record in the sector demonstrated by the success in opening up the Santander mine in Peru and the Caribou mine in Canada. We have been working together as partners since their first mine was built and we share the same vision for the future growth of the business through value-creating organic and inorganic growth opportunities. We are excited to form part of this unique global zinc vehicle, providing pure zinc exposure across a wide geographic footprint.”

Read the article online at: https://www.drybulkmagazine.com/dry-bulk/15032017/glencore-zinc-transaction-with-trevali/


 

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