UPDATE: Xstrata Buys 23.6% Stake In Pallas Green For $19.5 Million

Xstrata Zinc Canada has agreed to buy the remaining 23.6% stake it doesn't own in the Pallas Green project in Ireland in a deal worth $19.4 million, its parent, U.K.-listed miner Xstrata PLC (XTA.LN), said Wednesday.

The stake currently belongs to Xstrata's joint venture partner in the project, Minco PLC (MIO.LN).

The project, located in Cahernconlish, Limerick County, will be solely owned by Xstrata. Pallas Green is at the pre-feasibility study stage and has an estimated inferred resource of 25.9 million metric tons with 7.51% zinc and 1.38% lead.

Xstrata's zinc and lead operations and exploration projects are located in Australia, Canada, Germany, Peru, Spain and the U.K. The division produced around 766,000 tons of refined zinc metal in 2010, along with around 239,000 tons of refined lead metal.

Xstrata shares closed in London Tuesday at 1349 pence, valuing the company at GBP40.01 billion; Minco shares closed at 4 pence, valuing the company at GBP14.88 million.

-By Ian Walker and Andrea Hotter, Dow Jones Newswires; 44-20-7842-9296; [e-mail]