Glencore to sell its Bolivian zinc assets for $110 million
(Kitco News) - Glencore today announced thatit has reached agreement with Santa Cruz Silver Mining for it to acquire theholding companies which own Glencore's Bolivian zinc assets, comprising ofSinchi Wayra and Illapa.
Glencore said it will receivean initial amount of USD20 million on the completion date and a further USD90 millionto be paid within 4 years or less (depending on certain market standardmandatory and early prepayment provisions) from completion.
At completion, Glencore willenter into a number of net smelter royalty agreements each at 1.5% in respectof the Bolivian mining business with Santa Cruz which provide for continuedlife of mine payments based on the performance of the relevant mines.
Glencore added it will alsoretain offtake rights for life of mine in respect of the production from therelevant mines.
Glencore's Sinchi Wayra ownsthe Reserva, Tres Amigos and Colquechaquita mines, the Don Diego concentratorand power plants; whereas Sociedad Minera Illapa owns a 45% contractual jointventure right in the Porco and Bolivar mines.
Glencore is one of theworld's largest global diversified natural resource companies and a majorproducer and marketer of more than 60 commodities. The group's operationscomprise around 150 mining and metallurgical sites and oil production assets. Glencore'scompanies employ around 135,000 people, including contractors.
By Vladimir BasovFor Kitco News
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