Diversified mining company and commodity trader Glencore on Friday announced that it would buy gold miner Newmont’s 18.75% shareholding in the MARA project, in Argentina.
Following completion of the transaction, Glencore would own 43.75% of MARA, which is a brownfield project located in the Catamarca province. Gold Fields takeover target Yamana Gold continues to own 56.25% and remains the operator of the project.
Glencore would pay Newmont $124.9-million upon closing and a $30-million deferred payment upon commercial production subject to a yearly interest charge of 6%. Total deferred consideration is capped at $50-million.
The MARA project is a JV formed in December 2020 between Yamana Gold, Glencore and Newmont following the integration of the Minera Alumbrera plant and mining infrastructure and Agua Rica 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.
The feasibility study is expected to be completed later this year.
The closing of the transaction is subject to customary conditions and regulatory filings.