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PERTH (miningweekly.com) – ASX-listed Blackthorn Resources has signed an agreement with mining major GlencoreXstrata to sell its remaining 27.3% interest in the Perkoa zinc project, in Burkina Faso, for $12-million.
Under the terms of the transaction, Blackthorn would receive $10-million for its equity interest in Perkoa, and $2-million for exploration expenditure incurred.
In addition, Blackthorn would not be required to contribute its share of the $30-million working capital required for the Perkoa project, and would be released from all claims and contingent liabilities in relation to the project.
Opencut operations at the Perkoa mine were suspended in February this year, with Blackthorn citing resource underperformance, weaker metal prices and "unacceptable" openpit financial results.
This followed GlencoreXstrata downgrading the Perkoa ore reserve to 4.9-million tonnes, grading 9.9% zinc, 0.2% lead and 41 g/t silver.
The ASX-listed junior subsequently undertook a review of the operation and its business plan.
Blackthorn CEO Mark Mitchell said on Wednesday that the terms of the settlement with GlencoreXstrata represented fair value for the company’s equity stake in the Perkoa project.
“We are very pleased with the settlement agreed with our partners GlencoreXstrata for the Perkoa project, and while we are disappointed to end our association with the project, this settlement provides significant capital for Blackthorn to move forward with, and will allow all parties to focus on the future.”
Mitchell said that Blackthorn’s immediate focus would remain on progressing the development of its Kitumba copper project, in Zambia, which would benefit from the additional funds.
“Beyond Kitumba, we now have the means to consider new opportunities,” he added.