Glencore has signed an agreement with Trevali to sell its stakes in two zinc mines in Namibia and Burkina Faso.

Trevali will acquire 80% stake in Glencore’s Rosh Pinah mine in Namibia and 90% stake in Perkoa mine in Burkina Faso for a consideration of $400m.

An amount of $244m will be paid in cash and the remaining $156m will be paid by Trevali by issuing 175.1 million shares. Apart from this amount, Trevali will pay Glencore an additional $30m to repay a debt.

Subject to customary conditions and regulatory approvals, the transaction is expected to close in July this year.

With the acquisition, Trevali, the Canadian mining company will add two African zinc mines to its existing portfolio of mines in Peru and Canada.  The acquisition will also materially increase the company’s geographical presence and offers access to global capital markets.

On the other hand, Glencore will increase its stake in Trevali from the present 4% to 25% and board membership to two seats.

Once the deal finalises, Trevali estimates to more than double its zinc production to about 410 million pounds per annum, becoming one of top 10 producers of zinc in the world.

Trevali president and CEO Mark Cruise said: “The acquisition of Rosh Pinah and Perkoa is a historic event and unique opportunity for Trevali shareholders, and sets the stage for a multi-asset, low-cost global zinc producer.

“The Assets provide strong upside to shareholders in the current strengthening macro-zinc environment through scale of production as well as an attractive package of exploration ground.”

Glencore Zinc Marketing head Daniel Maté said: “We are pleased to strengthen our partnership with Trevali as they embark on the development of the premier zinc company in the market. Trevali has a proven track record in the sector demonstrated by the success in opening up the Santander mine in Peru and the Caribou mine in Canada.

“We have been working together as partners since their first mine was built and we share the same vision for the future growth of the business through value-creating organic and inorganic growth opportunities.

“We are excited to form part of this unique global zinc vehicle, providing pure zinc exposure across a wide geographic footprint.”