Glencore Buys Minority Stake in Argentinian JV from Newmont for $124.9 Million
23 September 2022 - 2:28PM
Dow Jones News
By Adriano Marchese
Newmont Corp. has agreed to sell its minority stake in a
three-way project in Argentina to joint-venture partner Glencore
PLC for an initial price of $124.9 million.
In a joint statement, the two companies said Friday that
Glencore will acquire Newmont's 18.75% shareholding in the MARA
project, a joint venture created at the end of 2020 between
Glencore, Newmont and Yamana Gold Inc.
The venture was formed following the integration of the Minera
Alumbrera plant and mining infrastructure and Agua Rica
project.
Under the terms of the agreement, there will also be a $30
million deferred payment once commercial production begins, the
companies said. This will be subject to an annual interest charge
of 6%, with a total deferred consideration capped at $50
million.
Following the transaction, Yamana will remain the operator of
the project with an ownership of 56.25% of the project, with
Glencore owning the remaining 43.75% stake.
The MARA project has proven and probable mineral reserves of 5.4
million metric tons of copper and 7.4 million troy-ounces of gold
and has been determined to have an initial mine life of 28 years,
the companies said.
In July, Newmont revised its guidance for annual gold production
in response to operational challenges at one of its mines and a
competitive labor market. The miner said it now expects
attributable gold output of 6 million ounces this year, down from a
prior forecast of 6.2 million ounces.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
September 23, 2022 08:13 ET (12:13 GMT)
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