Glencore Buys Minority Stake in Argentinian JV from Newmont for $124.9 Million

By Adriano Marchese

Newmont Corp. has agreed to sell its minority stake in a three-way project in Argentina to joint-venture partner Glencore PLC for an initial price of $124.9 million.

In a joint statement, the two companies said Friday that Glencore will acquire Newmont's 18.75% shareholding in the MARA project, a joint venture created at the end of 2020 between Glencore, Newmont and Yamana Gold Inc.

The venture was formed following the integration of the Minera Alumbrera plant and mining infrastructure and Agua Rica project.

Under the terms of the agreement, there will also be a $30 million deferred payment once commercial production begins, the companies said. This will be subject to an annual interest charge of 6%, with a total deferred consideration capped at $50 million.

Following the transaction, Yamana will remain the operator of the project with an ownership of 56.25% of the project, with Glencore owning the remaining 43.75% stake.

The MARA project has proven and probable mineral reserves of 5.4 million metric tons of copper and 7.4 million troy-ounces of gold and has been determined to have an initial mine life of 28 years, the companies said.

In July, Newmont revised its guidance for annual gold production in response to operational challenges at one of its mines and a competitive labor market. The miner said it now expects attributable gold output of 6 million ounces this year, down from a prior forecast of 6.2 million ounces.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

September 23, 2022 08:13 ET (12:13 GMT)

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