31st Jul 2023 12:45
(Alliance News) - Glencore PLC on Monday said it has agreed to acquire Pan American Silver Corp's 56% stake in the Mara copper and gold project in Argentina.
The Barr, Switzerland-based miner and commodity trader said it will pay Pan American USD475 million in cash, as well as granting the company a 0.8% net smelter return royalty.
The acquisition gives Glencore sole ownership over the project, with the firm having acquired Newmont Corp's 19% stake in the project in October last year, which took its holding to just under 44%.
The project was formed as a joint venture between Yamana Gold Inc, Glencore and Newmont in 2020. Pan American acquired Yamana's majority stake as part of its acquisition of the firm in March.
Glencore noted that the Mara project, situated in Catamarca, Argentina, has proven and probable mineral reserves of 5.4 million tonnes of copper and 7.4 million tonnes of gold, with a 27 year mine life.
The firm added that Mara is expected to be a top-25 global copper producer once operational, with copper production in the first 10 years forecast to be more than 200 kilotonnes per year.
The acquisition is expected to be completed in the third quarter of 2023.
Glencore shares rose 1.7% to 474.45 pence each on Monday afternoon in London.
By Harvey Dorset, Alliance News reporter
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