Zanaga Iron Ore Acquires Outstanding Iron-Ore Project Stake in Return for Shares

By Joe Hoppe

Zanaga Iron Ore Co. shares rose Wednesday after it said that it has agreed to acquire Glencore Projects' controlling shareholding in the Zanaga Iron Ore project in return for shares.

Shares at 0912 GMT were up 0.66 pence, or 20% at 4.0 pence.

The company said it will acquire Glencore's 50% plus one shareholding in Jumelles, the entity that indirectly holds the project's mining license.

In return, Glencore will be issued 286.3 million new shares in Zanaga, which is expected to represent a total shareholding of 48.26% in the company post-completion.

Glencore International, Zanaga and Jumelles' subsidiary MPD also entered a marketing agreement, taking effect immediately before the transaction completes. The agreement is for the sale and purchase of all future iron-ore production from the project and any other affiliates in the Republic of Congo.

To fund the project's continuing work program and budget, as well as Zanaga's working capital requirements, Glencore has agreed to amend terms of a loan agreement, raising it from $1.2 million to $1.8 million, and extending the repayment date to the end of 2023.

Write to Joe Hoppe at [e-mail]

(END) Dow Jones Newswires

November 23, 2022 04:48 ET (09:48 GMT)

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