As agreed, Glencore will receive $20m as consideration and provide a secured facility of up to $40m to fund certain mandatory tender offer obligations of Transition Metals
Volcan is one of the largest producers of zinc, lead and silver in the world. Image Representative. (Credit: Stefan Korbion from Pixabay)
Glencore has signed a definitive agreement to divest its controlling stake in Peru-based polymetallic mining company Volcan Compañia Minera.
In a statement, Glencore said that Transition Metals, a subsidiary of Argentinian company Integra Capital, will acquire the majority stake in Volcan.
“As part of the transaction, Transition Metals will pay Glencore $20m and Glencore has agreed to provide a secured facility of up to $40m to fund certain mandatory tender offer obligations of Transition Metals pursuant to applicable Peruvian laws and regulations,” the statement said.
With no regulatory approvals required, the deal is set to close later this week.
Since 2004, Glencore has been a shareholder of Volcan. In 2017, Glencore made a public tender offer to all Volcan’s shareholders for up to 48.19% of the total class A common shares of Volcan at an offer consideration of $1.215 per class A common share.
Following the closing of the offer, Glencore held 55.03% of the total class A common shares and an economic interest of 23.29% in Volcan.
Volcan, which began operations in 1943, is one of the largest producers of zinc, lead and silver in the world.
The company operates in the central mountains of the Peruvian Andes. It currently operates 12 mines and eight plants.
Headquartered in Switzerland, Glencore is a global diversified natural resource company. It produces and markets more than 60 commodities, and has a footprint in more than 35 countries.
Earlier this year, Glencore and its joint venture partner Société Minière du Sud Pacifique (SMSP) moved the Koniambo Nickel operation (KNS) in the north of New Caledonia into care and maintenance.