Glencore will soon own 43.75% of the MARA project in the Catamarca province of Argentina after entering an agreement to acquire Newmont’s 18.75% shareholding.
Under the terms of the deal, Glencore will pay Newmont $124.9 million upon closing and a $30 million deferred payment upon commercial production subject to an annual interest charge of 6%. Total deferred consideration is capped at $50 million.
The MARA project was formed as a joint venture in December 2020 between Yamana Gold, Glencore and Newmont following the integration of the Minera Alumbrera processing plant and mining infrastructure with the Agua Rica project.
Under the new structure, Yamana Gold will remain the operator with a 56.25% interest in the brownfield project.
MARA has proven and probable mineral reserves of 5.4 million tonnes of copper and 7.4 million ounces of gold contained in 1.105 billion tonnes of ore with an initial mine life of 28 years.
Source: Glencore