Glencore buys Newmont’s stake in Argentina copper-gold mission


The MARA copper gold mission. Picture courtesy of Yamana Gold.

Mining and commodities large Glencore (LSE: GLEN) is shopping for Newmont’s (TSX: NGT; NYSE: NEM) minority stake within the Argentinean MARA copper-gold mission, a three way partnership created in 2020 between the 2 firms and Yamana Gold (TSX: YRI; NYSE: AUY).

Glencore pays Newmont an preliminary worth of US$124.9 million for the gold miner’s 18.75% curiosity in MARA.

There can even be a US$30 million deferred fee as soon as industrial manufacturing begins, the businesses mentioned. This shall be topic to an annual curiosity cost of 6%, with a complete deferred consideration capped at US$50 million.

The deal will increase Glencore’s stake in MARA to 43.75%. Yamana Gold, which is the present takeover goal of South Africa’s Gold Fields (NYSE: GFI; JSE: GFI)  will stay the mission’s operator with a 56.25% stake.

Glencore, Newmont and Yamana shaped the MARA following the combination in 2019 of the Minera Alumbrera plant and mining infrastructure and Agua Rica copper-gold mission.

The mission, situated within the Catamarca province of Argentina, has confirmed and possible mineral reserves of 5.4 million tonnes of copper and seven.4 million oz. of gold and an preliminary mine lifetime of 28 years.

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