SEATTLE (Scrap Monster): Glencore International AG and Newmont Corporation announced that they have reached an agreement, by which Glencore will acquire Newmont’s 18.75% shareholding in the MARA copper-gold mine project in Argentina- a joint venture formed in 2020 between the two companies and Yamana Gold.
Following the completion of the transaction, Glencore will have 43.75% ownership of MARA. Also, Yamana Gold Inc. will continue to remain as the operator with 56.25% ownership of MARA.
As per terms of the agreement, Glencore will pay $124.9 million upon closing of the transaction and a $30 million deferred payment upon beginning of commercial production subject to an annual interest charge of 6%. The total deferred consideration is being capped at $50 million. The transaction is subject to customary closing conditions and necessary regulatory approvals.
The MARA open pit mining project, located in the Catamarca province of Argentina, located approximately 25 kilometres north of Andalgala, has proven and probable mineral reserves of 5.4 million tonnes of copper and 7.4 million ounces of gold. The initial mine life of the project is estimated at 28 years.