Following the acquisition, Glencore holds 54.5% indirect interest in the combined property, while Fleurette will claim 31% stake through its subsidiary, Rowny Assets, and an additional 14.5% held indirectly by High Grade Minerals.
With majority interest, Glencore will have overall management and operational control of the projects.
The agreement gives Glencore an acquisition option and Rowny has an option to offload 50% of Rowny’s share in July 2016 and the remainder in July 2018 at ongoing market value.
The merger of the two projects consolidates Fleurette’s stake in a potential copper cobalt operation with significant scope for expansion, the company said.
With this merger, Mutanda-Kansuki are expected to have annualized production capacity of 200,000 tons per annum of copper cathodes and 23,000 tons per annum of cobalt hydroxide by end of 2013.
"The merger of Mutanda and Kansuki consolidates Fleurette’s stake in an important copper cobalt operation with significant scope for expansion," the company noted.
