Glencore sales off stakes in African markets
Story from: CAJ News Africa
By TINTSWALO BALOYI
JOHANNESBURG, (CAJ News) – GLENCORE, the Anglo–Swiss multinational commodity trading and mining company, has shed off major stakes in its operations in Namibia and Burkina Faso for US$400 million.
Tevallli, the Canadian zinc-focused, base metals mining company, will purchase Glencore’s 80 percent interest in the Rosh Pinah mine in Namibia and 90 percent interest in the Perkoa mine in Burkina Faso.
The $244 million is to be paid in cash, with the remainder paid through the issuance of over 175 million shares.
Trevali will additionally pay Glencore US$30 million to repay an existing debt facility.
The transaction is subject to customary regulatory approvals and is expected to close by July.
“We are pleased to strengthen our partnership with Trevali as they embark on the development of the premier zinc company in the market,” said Daniel Mate, Glencore’s Head of Zinc Marketing.
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,” added Mate.
– CAJ News
This post is from CAJ News Africa. Click here to read the full text
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